There’s a fading but lingering misconception that socially responsible investing (SRI) means sacrificing returns against a benchmark. When evaluating the pros and cons of responsible investing, ...

Two friends met over coffee and were discussing passive investment products such as index funds and ETFs. Arpit: Hey! Markets have corrected in recent times which gives me an opportunity to buy at ...

The appeal of passive investments—putting money in funds where the manager does not make any active calls—is that they will deliver market-related returns (won’t underperform the benchmark index) and ...

Most of us believe that index funds will consistently deliver returns similar to the market, regardless of whether we invest in SIPs or a lump sum. Now imagine this: one person invests Rs 5 lakh as a ...

Diversification is an essential element in the investment journey. The underlying idea is to spread the amount invested in different asset classes to reduce the risk while getting maximum returns.

Equity factor strategies have experienced performance challenges relative to cap-weighted indexes since the COVID-19-induced market crash of 2020. In cap-weighted indexes, companies with higher market ...

A passive fund or an exchange traded fund (ETF) attempts to perfectly mimic an index. However, their returns don’t perfectly trail the respective index. Tracking ...

Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that. In some instances, a high ...

Index funds are becoming a preferred option for many investors on account of their low-cost structure, and patchy track record of active funds to consistently generate alpha. While index funds mimic ...