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Cafemutual’s recent survey which captured the mood of MFDs on passives reveals that over 75% of the MFDs have sold passive funds to their clients.
Of the total 968 respondents, 76% said that they have distributed passive funds to their clients.
While 20% of MFDs who participated in the survey said that they have more than 10% of their assets under advisory in passive funds, 56% have less than 10% of AUM in passives. Only 24% do not have any passive assets.
Further, when asked ‘Do your clients show interest in investing in passives?’, 37% said their clients have shown interest. Almost a similar percentage of MFDs said their clients know about passives but have not shown any interest in them. The remaining 26% stated their clients do not know about passives.
The survey titled ‘Pulse of MFDs: Passives’ shows that many MFDs have been talking about passives with their clients as 61% MFDs said they have spoken about passives with selected clients. Another 27% said they have introduced passives to all clients. Only 12% of the respondents prefer not to talk about passives.
Bhavesh Shah of Ask Circle strongly believes that passive funds will gain traction in times to come. In fact, he told Cafemutual that he has been receiving a lot of queries of investors on passive funds. He said, “Passives currently form less than 10% of my total portfolio. But with their rising demand, I expect this share to increase further,” said Bhavesh.
To give you more clarity on passives, Cafemutual is holding India’s first event focusing on passives titled Cafemutual Passives Conference 2022. The event will have best in class speakers who will help you prepare for the Passives - ‘The New Frontier’!
You can learn more about the event by clicking here.
