Whalesbook
Net inflows into India's passive mutual fund schemes have slowed down in FY26, with a 17% decrease compared to the previous year. This indicates a shift as investors now prefer actively-managed funds, seeking higher-than-market returns. New fund offers for passive schemes also saw a significant drop. While the long-term outlook for low-cost passive products remains positive due to institutional adoption, retail investors are increasingly drawn to the potential alpha from active management.