Optimising asset allocation using index funds

The rise of index funds has transformed India's investment landscape, prompting thoughtful discussions about portfolio construction. While some advocate for a purely passive approach, others steadfastly believe in active management. The truth lies somewhere in between, with both strategies offering distinct advantages in different market segments. Index funds have gained popularity for compelling reasons. Their lower expense ratios relative to active funds may significantly impact long-term returns. This cost advantage, combined with their ability to match market performance, makes them particularly attractive. Their holdings' transparency and simplified investment approach add another layer of appeal. Moreover, a