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Passive funds follow a rule-based approach to investing with no active stock selection. They follow an index (like Nifty 50 or Nifty 500) and try to replicate its performance by buying all stocks with the same weight as in the index.
Our weekly personal finance series continues with this look at an essential component of index funds
ETFs and index mutual funds. Which one is a better choice? SECTIONS Last Updated: Jun 01, 2021, 09:02 AM IST Share Synopsis As with everything in life, there are some things that you actively participate in and some others where you are passive. iStock As with everything in life, there are some things that you actively participate in and some others where you are passive. Active participation is when you are directly engaged and involved in the outcome. Passive participation is just the opposite, wherein you observe the proceedings without directly influencing the activities or their outcome...