How good would it be to replace a large-cap mutual fund with an Index fund for long-term perspective?
Going forward due to TER Index as a benchmark and recent SEBI Recategorization, it is hard for active funds to beat the benchmark. Hence, you may consider passive funds.
- Active investing requires a hands-on approach, typically by a portfolio manager or other so-called active participant.
- Passive investing involves less buying and selling and often results in investors buying index funds or other mutual funds.
- Both styles of investing are beneficial, but passive investing is more popular in terms of the amount of money invested. Additionally, at least on a superficial level, passive investments have made more money historically.
- In the current 2019 market upheaval, active investing has become more popular than it has in several years, although passive is still a bigger market.