Whether active strategy outperformed passive investing in India? How to analyse active mutual fund?
1 Answers
Hi,
One can analyze the performances of actively manged funds with Index based funds / Indices to know if the funds' have out-performed or not (whether Alpha has been generated for the investors or not).
The analysis can be subjective, for example, if I have been investing in a dud fund (actively managed) then its performance vs benchmark index or relative index fund can be bad.
Given the recent SEBI's reclassification of MF schemes, it makes sense to have both actively managed funds and passively managed funds to have in ones investment portfolio.
You may kindly go through this interesting article..
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