In this State of the Economy podcast, bl.portfolio editor Parvatha Vardhini C speaks to Vishal Jain, CEO, Zerodha fund house, on passive investing through index funds and ETFs.

Vishal Jain begins by discussing his background in launching India’s first ETFs in 2001 and emphasized the significance of passive investing, especially in volatile market conditions.

The conversation then looks at the role of passive investing in the current market scenario, particularly focusing on small and mid-cap segments.

The discussion covers the potential benefits of passive investing in small and mid-cap spaces. The podcast also touches upon the recent surge in passive launches in the market and the need for a balanced portfolio approach, incorporating both active and passive strategies.

The podcast looks at international diversification, addressing regulatory restrictions affecting overseas ETF investments and recommending US listed ETFs based on broad-based indices like S&P 500 or NASDAQ 100 through the LRS route for investors seeking exposure to international markets.

Vishal Jain discusses Zerodha’s approach to passive investing, highlighting why their choice for first fund was from the large & midcap category. The discussion also covers debt passive options, including whether target maturity funds are still attractive, and the potential for future growth in passives in the debt space.

The conversation ends with a discussion on the challenges and advantages of ETF investing, including liquidity issues and regulatory changes implemented by SEBI to improve transparency and market stability. Vishal Jain talks about how a diversified portfolio using passive products can be built to achieve long-term financial goals effectively.

Listen in!

Host: Parvatha Vardhini C, Producers: Anjana PV, Siddharth Mathew Cherian

About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.

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