Shrinking Alpha in Large Caps

Friday, August 31st, 2018

About a year ago we had done a post on the shrinking Alpha in large cap mutual funds. Globally, there has been a¬†shift of financial flows from active to passive management because of the inability of active managers to outperform their benchmarks consistently after fees. For a long time India was able to buck this […]

Zero Cost Funds

Thursday, August 9th, 2018

This is an interesting development: Fidelity has launched two zero cost mutual funds. The global trend is toward lower expense ratios and fee structures as investors shift more aggressively toward passive management. The idea behind these zero cost funds is that Fidelity can probably use these funds as loss leaders to get more clients and […]

Active vs. Passive Investing

Saturday, May 13th, 2017

Globally we have seen a huge shift in the way people invest in the financial markets. Investors have increasingly allocated money towards passive investing at the expense of actively managed funds. India has so far managed to buck this trend, primarily because active fund managers here still outperform the benchmarks. But this is slowly changing.