Active picks vs index funds is the big debate among Indian long-term investors. The chatter shows a split: some back active large-cap bets like Nippon India Large Cap Direct Growth and ICICI PRU Large Cap Mutual Fund, noting a 0.68% expense ratio and metrics such as Alpha 6, Beta 0.92, Sharpe 1.06, Sortino 1.78; others lean toward the simplicity of index funds and broad routes like Nifty 50 mutual funds. [2]
Active vs Passive: The front-runners Some readers defend active options, arguing for selective picks that can outperform benchmarks. Others push for passive exposure via index funds or Nifty 50 trackers, emphasizing lower costs and discipline. [2]
Diversification as the middle path A common approach is to start with a broad-market index fund or ETF (think Nifty 50 tracker) and pair it with a small SIP in 1–2 diversified equity mutual funds. Over time, readers suggest layering in stock ideas as understanding grows, keeping the core simple while leaving room for upside. [4]
ETFs and beyond Some threads also entertain diversification via ETFs, including gold or silver exposure, to balance risk while staying investment-aligned. [3]
Closing thought: in the long haul, the lesson is discipline—SIPs with broad funds, light but meaningful active bets, and a plan that avoids market timing. [4]
References
Good Large cap mutual fund
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