It’s just a matter of time before the share of passive funds increase and overtake the active ones. (it just happened in the US)
This reminds me of similar battle in the MF space The Regular plan v/s The Direct plan
The share of direct plans in the total AUM of mutual fund industry increased from 27.4% in March 2019 to 41.2% in March 2024. In comparison, the share of regular plans of mutual funds declined from 62.6% in March 2019 to 58.8% in March 2024.
Youngsters prefer direct plans
The shift towards direct plans can be attributed to the growing digital and financial literacy among younger individuals, coupled with the accessibility of low-cost, self-reliant investment options provided by fintech platforms.
So, I can see a similar thing happening in passive funds, it could take some time.
If ppl start investing more into ETFs, this shift could happen faster.
Edit: i kinda overlooked this - the article seems to have a clerical error, it should have been 37.4% (not 27.4%), now the % increase over 5 years doesn’t seem to be much.