Conservative investors, novices should choose passive ELSS funds

Those desiring index-beating returns, but willing to tolerate underperformance, may choose the active plan

Karthik Jerome

The real game changer would be if the regulator were to allow each AMC to offer one active and one passive ELSS

The Securities and Exchange Board of India (Sebi) recently allowed asset management companies (AMCs) with an actively managed equity-linked savings scheme (ELSS) to launch a passive ELSS. To do so, they must shut down their existing active scheme. Most fund houses that have large assets under management (AUM) in their active schemes are unlikely to respond.

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First Published: Jan 18 2023 | 5:40 PM IST

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