Neutral impactSector
Active vs passive: How investors can choose the right fund strategy
business-standard.com 3 hrs ago·5 Oct 2026, 5:57 pm
Active funds are managed by portfolio managers who pick stocks, aiming to beat the market, while passive funds track an index and simply replicate its composition. The debate has intensified as low‑cost index funds have grown, prompting many investors to reconsider whether the higher fees of active management are justified.
For retail investors, the choice affects both cost and potential return. If an active manager consistently outperforms after fees, the extra expense may be worthwhile; otherwise, a passive fund can deliver market returns at a fraction of the cost. Investors should monitor fee structures, the manager’s track record, and any shifts in market volatility that could favor one style over the other. Upcoming regulatory disclosures on fund performance and fee transparency are also worth watching.
Key takeaways
- Category: Sector.
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