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Here's why ETFs are doing better than actively managed large-cap funds

Fund size should not be looked at in isolation

Mutual Funds
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Ashwani Bhatia
Why are exchange-traded funds (ETFs) doing better than actively managed large-cap funds these days? Will this trend continue?

In recent times, the Indian markets have seen a concentrated rally, that is, a rally in select stocks has­ contributed to the overall market rally. As large-cap funds are actively managed funds and have a broader universe than the Nifty 50 or the S&P BSE Sensex, these funds may or may not have these select stocks. This has been the primary reason for actively managed funds underperforming vis-a-vis exchange-traded funds, which track these market indices. These market anomalies are not sustainable for

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