Neutral impactEconomy
Market-Beating Returns Or Consistency? Motilal Oswal AMC CEO Explains The Trade-Off
NDTV Profit 1 hr ago·5 Sept 2026, 8:05 am
Motilal Oswal Asset Management Company's CEO recently highlighted a fundamental choice for investors: chasing higher returns or prioritizing stability. He explained that actively managed funds often aim to outperform benchmarks, which can lead to market-beating gains but also carries the risk of significant volatility. Conversely, funds that closely track an index, such as an ETF, typically offer more consistent performance over time, albeit with lower potential for outsized profits.
This trade-off is crucial for retail investors to understand when building a portfolio. Choosing between the two depends on an individual's financial goals and risk appetite. An investor seeking steady growth might prefer a consistent index fund, while someone with a longer time horizon and higher risk tolerance might opt for an active strategy hoping to beat the market. Ultimately, the decision should align with your personal investment horizon and comfort level with market fluctuations.
Looking ahead, investors should carefully review a fund's historical performance and volatility metrics. It is also wise to assess the fund manager's track record and strategy to ensure it matches your expectations. Diversification remains a key tool to manage risk, regardless of whether you choose a stable index fund or a high-volatility active fund. Always conduct your own research before making any investment decisions.
Key takeaways
- Category: Economy.
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