10 years back when Motilal Oswal Asset Management first launched its passive funds under the MOSt Shares ETF platform (https://bcwithrc.blogspot.com/2010/07/nifty-re-mixed-not-your-run-of-mill-nfo.html) , it garnered a fair share of buzz. However, actual investor adoption was low.. That's because there was little or no understanding of Index Investing. Also, investors at that point of time depended solely on their advisors to suggest products to invest in. Advisors were more keen to suggest active funds given the alpha they were able to generate.
In the past 10 years there has been a change. A new investing class of new/first time DIY investors using digital platforms to invest in direct plans has emerged. While they may want to invest themselves, they still have a long way to go in terms of being able to identify the right stocks/funds. That's where Index Funds come in. They are a simple way of investing in the equity markets as they involve no stock/fund selection, are cheaper to buy and index typically provides good returns in the long term.
Index Funds have been gaining increasing acceptance among investors. In the first 8 months of FY 2019 /20; passive funds account for over half of equity fund flows https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/#
However awareness of Index Investing and its benefits is still low.
As an equity investing expert MOAMC was one of the first to introduce this product class. As an expert it is also one of the first to come out with a campaign educating on the product class and its generic benefits to a DIY investor.
The campaign is primarily digital educating investors on the 3 core benefits of Index Investing as the building blocks of their equity portfolio
- Ease : If you don't know what to buy you can buy the whole market as Index Funds invest in the whole Index
- Economy : Since Index Funds do not have an active fund manager, costs are lesser
- Effective : Over the long term, the stock market index is known to create wealth
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