'Passive funds to grow severalfold'

How is your team viewing the current market valuations and preparing for possible corrections? Valuations are not inexpensive. Yet, they also reflect robust balance sheets, improved governance standards and strong medium-term growth profiles of companies. As investors, we need to keep optimum portfolio diversification, improve liquidity and focus more on stock selection versus large sectoral skews to reduce impact of any potential market correction. Are index and factor-based passive funds a fad or a lasting investment strategy? Index funds are witnessing significant investor interest and subsequent strong inflows. The equity index funds category was the second-best in terms of net flows in FY25 so far, second only to sectoral/thematic. Within the equity index category, factor-based fund (smart-beta funds) is one of the fastest-growing categories. Passive i

This article was originally published on November 04, 2024.