ETMarkets Fund Manager Talk: Understanding index methodology key for investing in equity ETFs: Siddharth Srivastava

"Distributors and advisors can play a big role by increasing the usage of passive products in client portfolios, especially in order to reduce the cost and active risk. Even in the case of the sector, theme, or strategy-based index products, where weights are probably more concentrated, indices will undergo scheduled reconstitution keeping the indices up to date on a periodic basis, though depending on the index methodology, the potential risk and reward may vary significantly."

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