Here’s all you need to know before investing in passive funds

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The August data from the Association of Mutual Funds in India (AMFI) showed that the net AUM (Asset Under Management) of the domestic mutual fund industry had crossed Rs 36 lakh crore for the first time, while that of equity has declined. If so, ETFs and index funds have registered gains. The index fund collected 1,110 crores in July, which reached 1,934 crores in August.

Ashish P Somaiya, CEO, White Oak Capital Management, says that new investors are coming to the market to get good returns and passive funds are a great option for beginners in the investment world.

Active funds are created by the managers of the mutual fund company according to their research and market. Passive funds are passively managed just like their name.

These funds work on the basis of a chosen benchmark index. The ratio of the stocks included in the index is the same as the investment in them.

Watch the full video to know more…