Tailor-made portfolios is where the money lies

By Nithin Sasikumar in BFO #333, 23 Jul, 21

Last week, Vanguard, the pioneer of index fund investing–where a mutual fund just replicates the stocks in an existing index such as the Sensex–decided to break with tradition. It made its first acquisition in its 46-year history by straying away from its roots of low-cost index-tracking funds. 

The company it acquired, Just Invest, is an upstart based on a ‘direct indexing’ strategy. Which means that it tailors a portfolio according to what a client wants.