Due to the low-cost structure of the passive funds, passive investing has gained huge popularity in developed markets such as that of the US. The global assets in passive products passed USD 5 trillion, with over 7,000 passive products as of March 2020. The US has a market share of 68 per cent with USD 3.6 trillion in assets and over 2,000 products. This is followed by Europe and Japan with 16 per cent and 6.5 per cent of market share, respectively. Though the numbers are far more modest for India, the growth has been encouraging.
The total assets under management (AUM) in passive products stood at USD 24 billion with 86 passive products. Compare this with the scenario of five years ago when in India the AUM was a mere USD 2 billion with 57 products. And a decade back it was far less with USD 1 billion in assets and 26 products in the market. In that sense, the progress made by India is remarkable, especially in the faster-paced active investing market. Two years ago, the exchange-traded fund (ETF) market constituted 2.2 per cent of the mutual fund industry while in December 2019 it stood at 7.5 per cent. In India, institutional investors and individual investors contribute nearly 92 per cent and 8 per cent of the assets, respectively, in passive products. Passive investing is an investment strategy that is said to maximise returns by minimising trading and investment costs. Index investing is the most common form of passive investing, whereby investors invest in funds that replicate broad market indices.
Denne historien er fra August 17 - 30, 2020-utgaven av Dalal Street Investment Journal.
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Denne historien er fra August 17 - 30, 2020-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
