Active Stocks
Mon Apr 22 2024 15:57:16
  1. Tata Steel share price
  2. 161.85 -0.15%
  1. HDFC Bank share price
  2. 1,512.30 -1.24%
  1. State Bank Of India share price
  2. 765.85 2.00%
  1. ICICI Bank share price
  2. 1,087.00 1.93%
  1. Wipro share price
  2. 461.95 2.01%
Business News/ Mutual Funds / News/  Majority of MF distributors are not likely to recommend passive funds: survey
BackBack

Majority of MF distributors are not likely to recommend passive funds: survey

Within equity funds, most respondents plumped for flexi cap category (43%) followed by mid and small cap funds (28%) and large cap funds (21%). Among debt funds, short duration funds were most in demand among investors

Passive funds are low-cost products with relatively low commissions for mutual fund distributors.Premium
Passive funds are low-cost products with relatively low commissions for mutual fund distributors.

MUMBAI: A survey of mutual fund distributors, conducted by Cafe Mutual, showed that a majority of distributors (55.40%) will not recommend passive funds. The survey of 361 mutual fund distributors, conducted in June, also showed that Balanced Advantage Funds (BAFs) have become the most popular mutual fund category among clients of distributors followed by international funds and equity ETFs.

Passive funds are low-cost products with relatively low commissions for mutual fund distributors. However, they have become increasingly popular over the past 1-2 years with a huge surge in assets under management. Mutual fund houses have also been launching them in greater numbers with Sachin Bansal’s Navi Mutual Fund launching a Nifty Index Fund at an expense ratio of just 0.06% from 3 July.

Within equity funds, most respondents plumped for flexi cap category (43%) followed by mid and small cap funds (28%) and large cap funds (21%). Among debt funds, short duration funds were most in demand among investors, followed by corporate bond funds and banking and PSU debt funds. About 48% of distributors reported adding fresh clients in the pandemic and 49.5% said their business grew during the pandemic. According to respondents, phone calls have been the most effective way of engaging with clients during the lockdown, followed by social media.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 28 Jun 2021, 05:34 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App