Why active management outsmarts stock market turbulence
mutual funds do best only in bull markets. But even in volatile markets, smart fund managers can create and protect value for investors in uncertain times. The recent correction, spanning 26th September 2024 – 21st January 2025, is a case in point.
Numbers tell the story
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-117730225»> Market downturns are the ultimate test for investment strategies, and the recent 12.2% dip in the Nifty 50 Index was no exception. Active funds demonstrated their strength with impressive results.
The above data illustrates that over two thirds of all actively managed funds across varied capitalisations managed to beat their indices on the downside falling less than the benchmark and protecting investor wealth. This shows a powerful insight: during market corrections, the agility and expertise of active fund managers truly shine and disproves the popular notion of them being closet indexers. Unlike passive strategies that simply mirror the market, active managers skilfully navigate risks, shielding investors from deeper losses and seizing opportunities for better outcomes. Actively managed funds give fund managers flexibility for smart decision-making allowing them to outperform and justifying their place in your MF portfolio.
Why active funds excel during volatility?
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