Passive funds can work if they simplify investing: Motilal Oswal AMC CEO

Once we see some recovery in real estate, this money will get released and move towards capital market products like mutual funds, says Aashish Somaiyaa

Actively managed equity schemes have continued to underperform passive funds for the second straight year. In an interaction with Jash Kriplani, Aashish Somaiyaa, MD and CEO of Motilal Oswal AMC, which recently launched a clutch of passive funds, shares why he sees huge scope for such products. Edited excerpts:

There has been some criticism of certain equity investments made by the fund house, even as the recent scheme performance has been better?

Markets rotate in and out of favour with certain investing styles, sectors, and stocks from time to time. Every fund and fund manager goes through cycles. But