The Pros and Cons of Passive Investing

Jan 4, 2025

Pratik Oswal, head of passive funds at Motilal Oswal Mutual Fund, teams up with Feroze Azeez, Deputy CEO of Anand Rathi Wealth, to dive into the booming world of passive investing. They discuss the remarkable growth of index funds and ETFs, highlighting their rise from 13% to a projected 40% of assets in India by 2027. The duo debates the merits of passive versus active management, emphasizing how investor behavior impacts returns. Tune in for insights on navigating mutual fund choices and the need for a balanced investment approach.

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INSIGHT

Broadening Passive Investing

The definition of passive investing has broadened beyond Nifty and Sensex.
It now includes quant strategies with transparent rules, encompassing sectors, themes, commodities, factors, and international funds.

INSIGHT

Future of Passive Funds in India

The Indian passive fund market is expected to grow significantly, mirroring the US trend with potentially hundreds of funds.
This growth will cater to diverse investor needs, including institutional and retail.

INSIGHT

Investor Confusion

Confusion among investors regarding fund selection is persistent, regardless of the number of available funds.
Investors have diverse perspectives and portfolios, highlighting the dynamic nature of equity markets.

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Welcome to the world of index funds and ETFs. Thanks to diversified holdings, lower costs and higher accessibility passive investments have really caught the fancy of investors in the last few years. They have grown at a CAGR of 55% in the last five years. Passive assets are expected to account for 40% of overall assets in India by 2027 up from 13% in 2022.

Tune in to this episode as ET’s markets editor Nishanth Vasudevan, Pratik Oswal, head of passive business, Motilal Oswal and Feroze Azeez, deputy CEO, Anand Rathi take you through the fascinating new wave of investments.

You can follow our host Nishanth Vasudevan on his social media: Linkedin & Twitter

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