NISM-Series V-A: Mutual Fund Certification Exam Notes
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Passive funds invest on the basis of a specified index; whose performance it seeks to track. the performance of these funds tends to mirror the concerned index. They are not designed to perform better than the market.
In passive funds, the portfolio is determined by the index itself, the fund manager has no role in deciding on investments. Therefore, these schemes have low running costs
SEBI - Categorization and Rationalization of Mutual Fund Schemes - Equity Schemes (11 sub-categories), Debt Schemes (16 sub-categories), Hybrid Schemes (6 sub-categories), Solution Oriented Schemes (2 sub-categories), Other Schemes (2 sub-categories)
Large Cap: 1st -100th company in terms of full market capitalization
Mid Cap: 101st -250th company in terms of full market capitalization
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