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. 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%).

Source: Mint June 28, 2021 12:00 UTC