The assets under management (AUM) of passive funds have grown to 10.2 trillion, while active funds stand at 50.9 trillion as of June 2024, according to a study titled Where the Money Flows by Motilal Oswal Asset Management Company. Passive funds now constitute 17 per cent of the industry's total AUM.
Key drivers of growth Experts highlight that both demand and supply factors are behind the increasing popularity of passive funds. The Employees' Provident Fund Organisation (EPFO) is a significant contributor to the growth of passive AUM, but individual investors are also increasingly favouring these funds.
On the demand side, the consistent underperformance of active funds has led investors to explore passive options.
"They have started seeking options that at least match market returns," says Vidya Bala, co-founder, PrimeInvestor.
Successive Standard & Poor's Indices Versus Active (SPIVA) reports have underscored this trend of underperformance in active funds. About 62.1 per cent large cap funds and 75.4 mid and smallcap funds underperformed their benchmarks over the 10-year period, according to the SPIVA India 2023 yearend scorecard.
Two key developments have reinforced this shift. "First, the Securities & Exchange Board of India's (Sebi) new categorisation rules limited the flexibility fund managers had previously.
Second, the adoption of the Total Return Index (TRI), which includes dividends, as the benchmark further accentuated this trend," says Bala.
ãã®èšäºã¯ Business Standard ã® September 02, 2024 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã ?  ãµã€ã³ã€ã³
ãã®èšäºã¯ Business Standard ã® September 02, 2024 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã? ãµã€ã³ã€ã³
Mkts hinge on Powell emulating Greenspan's soft landing
Traders are harking back on 1995, when Alan Greenspan led the Federal Reserve in pulling off a rare soft landing, for a playbook on trading the first interest-rate cut in four years.
Trump launches new crypto biz
Donald Trump headlined an event billed as the unveiling of a crypto platform promoted by the Republican nominee and his sons, putting the spotlight on a niche sector of digital assets with a history of controversy.
Instagram rolls out privacy settings for teens
Meta Platforms is rolling out enhanced privacy and parental controls for Instagram accounts of users under 18 in a significant overhaul aimed at addressing growing concerns around the negative effects of social media.
EU chief unveils new team after long, bumpy road
Focus on industrial competitiveness, growth, defence, and climate
Microsoft plans new $60 billion buyback
Amount represents less than 2% of company's market value
Wave of exploding pagers in Lebanon kills at least 8
Hundreds of handheld pagers exploded near simultaneously across Lebanon and in parts of Syria on Tuesday, killing at least eight people, including members of the militant group Hezbollah and a girl, and wounding the Iranian ambassador, government officials said.
CBI report on Kolkata rape, murder case disturbing: SC
The Supreme Court on Tuesday said it was disturbed by the findings given in a status report filed by the Central Bureau of Investigation (CBI) in the rape and murder of trainee doctor at RG Kar government hospital in Kolkata but refused to divulge the details, saying any disclosure may jeopardise the ongoing investigation.
Kejriwal resigns as Delhi CM, Atishi set to take over
Opposition calls her elevation a 'stop-gap'
Bengal economy saw decline over several decades: EAC-PM paper
West Bengal has experienced a continuous decline in its relative economic performance over several decades, according to a working paper by Economic Advisory Council to the Prime Minister (EAC-PM).
DBK Brand Rate applications to be filed with the Customs at the place of export
We are an export oriented unit (EOU). The notification 52/2003-Cus dated 31st March 2003 applicable for EOUS exempts only the basic customs duty, IGST and Compensation Cess.