The truth about active vs passive funds in India

"Just buy the index" has become the default advice. It's often true, but is it always? We looked closely at the India data, and the picture is more nuanced than the headline suggests. In this episode, our founder walks through how active and passive really compare across different fund categories in India, why the comparison is trickier than it looks (fees, direct vs regular funds, which benchmark you measure against), and what the numbers actually show. In some categories, active funds don't just compete, they lead. 93% of small-cap funds beat their index over 10 years. We get into why small, flexi and value funds tend to outperform while large and mid don't, how to actually judge a fund, and the three things that matter far more than picking funds at all. Episode 2 of The Wealth Algo. Chapters: 0:00 "Just buy the index", is it always true? 0:46 Active vs passive, explained 2:29 How active and passive get compared 3:31 What makes the comparison tricky 8:04 What the India data actually shows 9:31 Why small, flexi and value funds tend to win 11:06 How to actually judge a fund 15:00 The overlooked category: focused funds 16:27 What matters more than fund selection Follow our research here: https://www.otto.money/blog Wealth Beacon Investment Advisors Pvt Ltd, SEBI RIA No. INA000020749. For education only, not investment advice. Investments are subject to market risks.