Active Funds Favoured Over Index Funds for Long-Term Goals
Investors planning for long-term financial objectives are being advised to consider actively managed mutual funds over passive index funds. While passive funds offer low-cost market exposure, active strategies may provide better risk-adjusted returns in volatile markets.
Ashish, a 37-year-old investor from Bengaluru, currently invests Rs. 78,000 monthly through SIPs across various mutual funds, including Motilal Oswal Nifty 500 Momentum 50, SBI Small Cap Fund, SBI Contra Fund, Parag Parikh Flexi Cap Fund, Kotak Emerging Equity Fund, and Canara Robeco Bluechip Equity Fund. With a target corpus of Rs. 7 crore over 12 years for his daughter, experts recommend step-up SIPs of 10% annually and portfolio diversification across active funds to achieve long-term wealth creation goals.
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