Smart Beta Funds: A Smarter Way to Invest

It’s a well-known fact, supported by numerous studies, that many Large-Cap funds in India struggle to outperform their benchmarks. These benchmarks, which can easily be replicated by index funds, often leave investors searching for ways to generate alpha by exploiting market inefficiencies and cyclicality. In this context, Smart Beta funds have emerged as a compelling alternative, offering a balanced approach that combines the stability of passive investing with the innovative potential of active management. Smart Beta funds provide a middle ground—neither fully passive nor overly aggressive.