Active versus Passive

I went through your cover story titled ‘Passive or Active Funds: What’s the Good Choice’ and found it insightful. However, should I invest in active or passive funds at a time when the market is falling?

- Rudresh Khade

Editor Responds : Currently the market is in a downward spiral and this is leading many investors to panic and start selling their stocks. However, this is not the right strategy. It is the time to remain invested and our advice to you is to check your asset allocation, which should be according to your risk profile. Passively or actively managed funds would depend upon the category of investment. If you are investing in large-cap funds you can go for passively managed funds. Nonetheless, if you are investing in the broader market, you can invest in actively managed funds.