It is a debate that is gathering steam—is active investing really better than passive investing? Is the extra money you pay a fund manager to build a portfolio of stocks worth it? Investors in actively managed equity funds can breathe easy. Here is why.
The latest SPIVA India (S&P Indices Versus Active Funds) scorecard suggests that the average rupee invested in equity mutual funds continues to grow faster than the index. While the report highlights that many schemes across fund categories are underperforming the relevant benchmark index over some time periods, this comparison has to be taken with a pinch of salt.