Markets
BSE See NSE See 52,323.33
-178.65 (-0.34%)
Active and Passive

Active and Passive

Print

I have been thinking of adopting a passive investment strategy and your cover story titled ‘Setting Sights on Index Funds’ did help me understand more about it. But looking at the long-term performance, active funds do beat the index. So, would it make sense to shift the approach towards passive investing altogether?

- Rajnish Kapadia

Editor Responds : Thank you for appreciating our story. Historically, yes active funds have generated better results than passive funds in India. However, the margin of outperformance is shrinking. Moreover, in the large-cap category, the outperformance has not been great. Hence, you should adopt a mix of active (small-cap and mid-cap) and passive (large-cap) investment for the long term.

Comments are only visible to subscribers.

DSIJ Mindshare

Keep your eyes glued on these seven stocks today!

Karan DSIJ / Article rating: 3.4

BHEL: Keeping in view the concerns raised by equity analysts, institutional investors, and other stakeholders on the rising receivables, the company, in FY 2020-21, has reviewed the receivables and created additional merit-based provisions (which could have been deferred) of about Rs 1,800 crore. The provisioning has been done in case of projects, where the collections may have been doubtful.

Stock split: CESC approves sub-division of its equity shares

Such corporate action usually, even though not fundamentally important from the business growth perspective, is sentimentally positive for the stock prices.

Yogesh Supekar / Article rating: 4.4

The RP- Sanjiv Goenka Group’s Kolkata based flag ship company - The Calcutta Electric Supply Corporation or CESC has on Wednesday posted over 13 per cent jump in its consolidated net profit to Rs 429 crore in the March 2021 quarter.

First246Last