I am 42 and have two debt fund schemes. I can invest Rs 25,000 a month for the rest of my life. I want to build wealth. Should I invest in an active or passive equity fund?
The suitability of an active or passive equity fund depends on your risk appetite. An active fund usually carries some amount of additional risk as investment decisions are taken by a fund manager. In contrast, a passive fund invests in stocks in the same proportion as the underlying index with a tracking error signifying the difference in returns. To get the best of both