Navi AMC's Mulki on Passive Fund Boom: What Investors Must Know

• Passive mutual funds are gaining momentum among Indian investors due to changing market dynamics and increased awareness, says Navi AMC CEO Aditya Mulki.
• The shift is driven by declining scope for consistent outperformance in large-cap funds and a focus on asset allocation over individual fund selection.
• Younger investors, particularly millennials and Gen Z, are showing strong interest, influenced by global trends like the US market.
• Mulki debunks the misconception that active funds always offer superior downside protection; passive funds benefit from automatic index rebalancing.
• Investors can consider equal-weighted indices for balanced exposure, while active strategies remain relevant in mid-cap and small-cap segments.