Active Vs Passive Mutual Funds: Which Gives Better Returns For SIP Investors?

Returns are one of the biggest factors investors consider when choosing mutual funds. Pooja Bhinde, Certified Financial Planner, PB Investments, says passive funds often perform well in the large-cap category by closely tracking benchmark indices. However, active funds have historically outperformed in mid-cap and small-cap segments, where fund managers have greater opportunities to generate alpha through stock selection. She explains that investors can consider passive funds for large caps and active funds for mid and small caps to build a balanced portfolio.