says retirement funds (EPFO
and NPS) will be a big driver for ETF assets over the next 10 years. Moreover, recent underperformance of actively managed equity schemes and low-cost of investing could also push investors to look at ETFs more aggressively, say industry players.
Historically, in India, actively-managed schemes have been able to beat their respective benchmarks. However, the trend seems to be reversing in the past one year. A study by S&P Dow Jones Indices showed that 92 per cent of large-cap equity funds and 26 per cent of mid- and small-cap equity funds had underperformed their respective benchmarks in 2018.