Passive investing has become mainstream in India, but several myths persist. Investors should not judge passive funds solely by low costs, assume they are risk-free, or treat them as “buy and forget” products. Choosing the right index, understanding diversification limits, and evaluating ETFs beyond expense ratios are essential for better outcomes.

Passive investing has become mainstream in India, but several myths persist. Investors should not judge passive funds solely by low costs, assume they are risk-free, or treat them…

India's investment world is undergoing a significant transformation. Passive funds are leading this change, growing from 6% to 25% of the mutual fund industry in just a decade.…