Paisa Vaisa with Anupam Gupta The Future of Indian Markets: A Deep Dive into Active vs. Passive Investing | Paisa Vaisa
Sep 1, 2025
Akhil Chaturvedi, Chief Business Officer at Motilal Oswal, dives into India's dynamic financial landscape. He discusses the explosive growth of equity investing and SIPs, projecting a bright future for India's economy by 2047. He clarifies common misconceptions about investment returns and weighs the pros and cons of active versus passive investing strategies. First-time investors receive valuable tips on starting their journey, while the conversation highlights innovative investment vehicles like PMS and SIF, shaping modern wealth management.
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Start With Passive Beta, Then Add Active
- New investors should start with low-cost passive funds (Nifty/Nifty 500/BSE 1000) to gain market participation.
- Use passive ETFs for simple beta exposure and add active funds later once you understand the asset class.
HNI Demand Fuels Alternatives Growth
- Wealthy investors increasingly allocate to PMS, AIFs, private credit and VC as their mutual fund holdings outgrow diversification benefits.
- PMS/AIF assets have grown far faster than mutual funds, reflecting demand for differentiated, index-agnostic strategies.
Use 12% As A Realistic Equity Baseline
- Set realistic long-term equity return expectations around 12% annualized rather than assuming 15% every year.
- Align expectations with nominal GDP growth (real GDP plus inflation) and expect modest alpha over that baseline.