Passive investing in mutual fund schemes is not popular in India. Investors have preferred schemes managed by fund managers because of their ability to beat returns of the underlying benchmarks.
However, two passive funds in the large-cap category have stolen a march over their actively managed peers.
R*Shares Nifty BeES, the oldest and most popular Nifty tracking ETF, has beaten nearly half of all large-cap funds over the past five-year, seven-year and 10-year period, Value Research data compiled by Tavaga, a robo-investing platform, show. The returns would be higher if one takes into account that the fund pays out the dividend of 1-1.5 per cent every year, say experts.
