Passive funds aim to mirror their benchmark indexes as closely as possible, making every basis point matter. But perfect tracking is a fantasy. While investors can expect index funds to mimic their ...

The appeal of passive investments—putting money in funds where the manager does not make any active calls—is that they will deliver market-related returns (won’t underperform the benchmark index) and ...

Diversification is an essential element in the investment journey. The underlying idea is to spread the amount invested in different asset classes to reduce the risk while getting maximum returns.

Most of us believe that index funds will consistently deliver returns similar to the market, regardless of whether we invest in SIPs or a lump sum. Now imagine this: one person invests Rs 5 lakh as a ...

Tracking error, the amount by which an ETF's returns deviate from its benchmark index, is a fact of life and an often ignored fact at that. In some instances, a high ...

Tracking error is a measure used to determine how closely a portfolio follows its benchmark index. It's the standard deviation of the difference between the returns ...