Here's why investors should make index funds a part of their core portfolio

With active funds finding it increasingly difficult to beat their benchmarks, it is time for investors to have a significant allocation to passive strategies

We often hear statements such as “Localisation is the key to success in India” or “What works in the rest of the world does not work in India”. These statements are usually made by international brands across industries when they define their India-oriented business proposition and the need to be different in their approach. 

The same statement — “We are different” — has also been made by active fund managers. They often speak of how India is an imperfect market, and therefore higher quality research can result in better returns for investors through active fund management. India is unlike most developed