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Overview

Passive strategies have been attracting a large pool of investors who want to generate market returns at a relatively lower cost. From plain vanilla index funds and exchange-traded funds to quantitatively built smart beta funds for asset allocation, passive investing offers a variety of choices.

In India, the case for passive investing has not yet gathered as much momentum. Active management has had a good history of generating alpha (i.e., outperforming the benchmark). However, this has become increasingly challenging over time, especially in the large cap space. Recent analysis shows that in the large cap category more than 50% of the active funds underperformed the benchmark across periods of 1, 3, 5, and 10 years.

While the debate over active versus passive strategies may continue, many investors often seek a blend of both. For example, it is possible to adopt both styles through a “core and satellite” portfolio management approach. In this webinar, presenters will discuss passive investing approaches that wealth advisors and financial planners could use. In addition, they will also discuss some often misunderstood aspects such as “total cost of ownership” and using passive strategies to balance an active approach.

Key Learning Outcomes:

  • Understanding passive investments globally and how it is becoming increasingly difficult for active large cap funds to beat the benchmark.
  • Understanding the increase in investment flows to the passive space globally and its scope of growth in India.
  • Understanding passive investing strategies.
  • Understanding how passive funds could be positioned by advisors as a “complementary” and not as a “competing” strategy for accessing large cap equities.

 

This is the archived version of a live webinar that took place on 03 October 2019.

About the Speaker(s)

Anil Ghelani picture
Anil Ghelani CFA

Mr. Ghelani has been working for the DSP Group since 2003. The DSP Group has a legacy of more than 150 years, making it one of the oldest and most respected financial services firms in India. He is currently head of passive investments and products. Previously, he served as the business head and chief investment officer at DSP BlackRock Pension Fund Managers. Earlier in his career at DSP, he led the risk and quantitative analysis team, providing quantitative research inputs and buy-side credit research on companies across various sectors.
Mr. Ghelani has also worked at IL&FS Mutual Fund and at S. R. Batliboi, a member firm of EY. He has been a volunteer with the CFA Society India for more than a decade and currently serves as the vice chairman on the board. Mr. Ghelani is a CFA charterholder, Chartered Accountant and holds a Bachelor of Commerce degree.

Shreenivas Kunte
Shreenivas Kunte CFA, CIPM

Shreenivas Kunte, CFA, CIPM, is a director of professional learning and advocacy at CFA Institute. In this role, Mr. Kunte contributes to thought leadership in the investment profession. He writes on investing topics in leading publications and represents CFA Institute at conferences and forums. Mr. Kunte serves as an external research scholar at the Indian Institute of Technology Bombay. Previously, he worked as the country trading strategist for Citi in Tokyo, Japan. He holds a degree in computer engineering from the University of Mumbai.