All You Need To Know About Passive Mutual Funds

Various studies have suggested that equity delivers higher inflation-adjusted returns than any other asset class over a long horizon. The key here is the horizon of investment—the longer one remains invested in equities, the better the returns are expected to be. For many, it could be a tad difficult to comprehend the interplay between economic factors and stocks across various industries and sectors. For such people, picking stocks on their own can be a challenging task. Some may argue that mutual funds can help in this scenario as the job of picking the right stocks and sectors gets delegated to professional fund managers. The MF route can be a proxy against direct investment in shares. But even within the mutual fund universe, one needs to choose the instrument that best suits them. Picking the right fund can be a challenging task as they are available in a range of categories,...