Passive Investments: Trends, Challenges, and the Road Ahead in India and Global Markets

The objective of this article is, to explore the field of Passive Investing that covers, data on AUM (Assets Under Management) of ETFs (Exchange Traded Funds) held by the top 10 AMCs and a comparison with the global market (U.S. and China). Further, analyzing the costs involved (Total Expense Ratio) versus cost of active funds. According to SPIVA India Scorecard, nearly 52% Indian Equity Large Cap funds, actively managed in S&P BSE 100 underperformed their benchmark. The study addresses liquidity and volatility issues faced while including beyond top 250 passive stocks, as Small Cap stocks are sensitive to market events and experience significant price fluctuations.