My most of the mutual fund investment is in passive funds now. Passive funds means that the investment will track the index and invest accordingly. Along with that it is less costly than the active mutual funds along with that you don't have to worry about portfolio rebalancing.
Portfolio rebalancing is required if some of the active funds doesn't give good returns so you have to switch to another fund. And might be you have to do this task every year, if the selected funds are not good. So to not worry about your selected fund, Passive mutual funds works best.
I use Niyo Money App to invest in the Passive Mutual Fund, and have some passive mutual fund in my portfolio. I am happy that I have achieved Rs 15 Lakhs in my passive only mutual fund which is actually divided among 2 financial goals, Retirement and Children Education.
In the above video, I have revealed my portfolio along with that how you can also check if you are track to achive your goals or not. I feel Niyo Money App serves the purpose, but if you are using any other Mutual Fund then also investing in the passive funds works great. Just like ETF, I have moved most of my investment in the passive mutual fund and I am happy. I am happy with this change, and in the long run I know this will work perfectly fine. Since this is automated, I can have other work which I can take care without have to worry about my long term portolfio.
Do watch and let me know what's your thoughts about it. Are you also investing in Passive mutual fund. What's your thoughts about it?
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