{"id":5097,"date":"2026-02-09T12:36:35","date_gmt":"2026-02-09T12:36:35","guid":{"rendered":"https:\/\/nrimoneyclinic.com\/V1\/?p=5097"},"modified":"2026-02-02T15:04:23","modified_gmt":"2026-02-02T15:04:23","slug":"the-rise-of-passive-investing-how-to-build-a-wealth-creating-portfolio-in-india","status":"publish","type":"post","link":"https:\/\/nrimoneyclinic.com\/V1\/the-rise-of-passive-investing-how-to-build-a-wealth-creating-portfolio-in-india\/","title":{"rendered":"The Rise of Passive Investing: How to Build a Wealth-Creating Portfolio in India"},"content":{"rendered":"\t\t
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For decades, the Indian equity landscape was dominated by active mutual funds, where star fund managers made the tough calls on which stocks to buy and sell. But the wind is shifting. We are currently witnessing a “passivization” wave in India\u2014a transition where low-cost, transparent, and simple index-based strategies are moving from the sidelines to the mainstream.<\/span><\/p>

If you are looking to build a long-term portfolio in India, understanding the passive revolution is no longer optional\u2014it is essential.<\/span><\/p>

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What Exactly is Passive Investing?<\/span><\/h3>

In the world of mutual funds, there are two primary styles:<\/span><\/p>

  1. Active Investing:<\/span> A fund manager actively selects stocks with the goal of “beating the market” or outperforming a specific benchmark (like the Nifty 50).<\/span><\/p><\/li>

  2. Passive Investing:<\/span> There is no fund manager picking individual stocks. Instead, the fund simply replicates a specific index. If you buy a Nifty 50 Index Fund, your money is spread across the 50 largest companies in India. If the Nifty 50 goes up by 10%, your investment goes up by roughly 10%.<\/span><\/p><\/li><\/ol>

    Why is it gaining traction?<\/span><\/p>