Investors who want to take exposure in equity through mutual funds, have the option of choosing actively managed funds or passive funds. Passive funds, on the other hand, don’t have fund managers deciding the portfolio. Exchange traded funds (ETFs) are a type of passive funds where the portfolio mirrors an index of stocks and the proportions they are held in. Here are some reasons why passive funds like ETFs may suit you. If you don’t have the time or resources to track fund managers and their performance, long-term investing through ETFs may work well for you.

Source: Mint February 05, 2017 18:18 UTC