Passive Funds: Expert decodes new rules
Securities and Exchange Board of India (Sebi) has put in place a framework for managing passive funds - Exchange Traded Funds (ETFs) and Index Funds - amid the growing popularity of such funds as an investment product for retail investors. Anubhav Srivastava, Partner and Senior Fund Manager at Infinity Alternatives explained these new rules and how will they change the face of passive funds in a CNBC-TV18 special show, Mutual Fund Corner.
The Securities and Exchange Board of India (SEBI) has put in place a framework for managing passive funds - Exchange Traded Funds (ETFs) and Index Funds - amid a growing popularity of such funds as an investment product for retail investors.
SEBI, in its circular on May 23, 2022, said mutual funds (MFs) can either launch an actively-managed ELSS scheme or a passively-managed one, but not in both categories. The passive ELSS scheme should be based on one of the indices comprising equity shares from top 250 companies in terms of market capitalisation.
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These rules are expected to provide a major fillip to this already fast-growing segment. Anubhav Srivastava, Partner and Senior Fund Manager at Infinity Alternatives explains these new rules and how will they change the face of passive funds in a CNBC-TV18 special show, Mutual Fund Corner.
Watch the accompanying video for the entire discussion
With inputs from PTI
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