Hypothetically, if all equity mutual fund schemes were traded on stock exchanges like shares or derivatives, the trading strategy in vogue would be — ‘long passive funds – short active funds’. This means a trader would bet that passively-managed funds like index schemes and ETFs will continue to outperform actively-handled share portfolios by mutual fund managers. The success of the trade would depend on which fund is chosen on the actively-managed part. But the way a few blue chips are controll ..
