The title basically. Majority of my corpus has been built via SIPs in active midcap funds over the past 7 seven years, but I am eagerly waiting for a passive Large-Mid (50-50) product, as no large-mid active product have outperformed the benchmark after re-categorization. A couple of other fund houses do have have this fund but the tracking difference (SIP & Lump-sum) is close to 3%. Is Zerodha Fund House doing anything differently (specially on the technology front) to keep the tracking error/ tracking difference in check?
The issue with many index products today is that they’re essentially placeholders in the product lineups of AMCs. Many AMcs aren’t committed to low-cost products given the inherent conflicts in offering both active and passive. At the end of the day, ensuring minimal tracking isn’t really a tech problem because there isn’t any big secret here. To my mind, it’s just about being committed to offering the best experience to the investor. I know this sounds vague, but that’s all there’s to it. Moreover, we have an experienced team who’ve done this for years and decades starting with Vishal.
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Thanks for the info. Any ballpark date for the NFO?
Tentatively, in the next couple of weeks.
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I am interested in investing conservative hybrid passive fund invests 30% each in equity, gold and 20% each in short term, long term debt funds which taxed at slab rate for all duration for my parents ? Any plan on anything like this. ?