AS THE BENCHMARK indices surge to all-time highs, investors seeking large-cap allocation in their portfolios may want to stick solely to index funds. While index investing is an attractive option for large-cap exposure, investors must consider a blend of active and passive funds now for optimal returns.
In fact, a recent report by S&P Indices Versus Active Funds (SPIVA) India Scorecard shows that half of actively managed large-cap funds have underperformed the benchmark S&P BSE 100 last year. The underperformance rates were significantly high over the three and five-year periods. However, experts say by carefully selecting a blend of funds, investors will achieve better returns, even with a 30-40% overlap in the portfolio.
Blended approach The right mix of largely active funds and smaller amounts in passive funds can help create a diversified portfolio. During a broad-based market rally, large-cap active funds tend to perform well. When the markets are volatile, passive funds always perform well.
هذه القصة مأخوذة من طبعة April 15, 2024 من Financial Express Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة April 15, 2024 من Financial Express Mumbai.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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