Wealth managers have increasingly begun allocating about a fourth of an investor’s equity mutual fund corpus to passive index funds, reflecting a change in investment strategy after returns from actively managed plans failed to exceed gains in broader-market benchmarks over the past one year.
While the Nifty returned 11% in the past one year, Value Research data showed that large-cap and multicap funds yielded 6.78% and 0.72%, respectively. The mid-cap category lost 8.2%.
