India’s $442 billion asset management industry is finally having to reckon with the passive investing juggernaut. The foundations for the boom were laid by a series of regulatory changes preventing active fund managers from gaming the league tables. Zerodha Broking Ltd., a Robinhood-like operator that’s become India’s biggest broker, is awaiting regulatory approval for an asset management company that will focus only on passive investing. “In India, while people have launched passive investment products, the focus hasn’t been passive as most of the revenue is generated from active funds," Kamath said. Like elsewhere in the world, one of the main drivers of the rush to passive funds is cost.

Source: Mint July 04, 2021 00:32 UTC