Is passive investing becoming a trend in India? Are fund managers losing mojo? Kaustubh Belapurkar anwers

Kaustubh Belapurkar, Director-Fund Research, Morningstar Investment Advisers India, says recently, we have seen a lot of action in terms of new passive fund launches, increased assets or money coming into passives..

Both are crucial for the market from a mutual fund industry and from an investor's perspective too...

The other thing that is happening is existing asset managers who have large assets, on an active basis are also augmenting their product bouquet by adding passive strategies if they didn't already have it for two reasons..

So, on the passive side, obviously, you can launch index funds and have a product available for investors who are looking for a passive investing option within the various options that could be available to them...

A few other important things to note; I think before the taxation change for debt funds, target maturity funds on the fixed income side so predominantly, we had equity passives to start with but on the fixed income side, we have had a whole host of target maturity funds, especially when interest rates were volatile...

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