Active Index portfolio is India's first smart beta portfolio strategy with multi factor model. With Indian Markets getting more efficient, the importance of passive strategies are increasing. Globally investments in passive strategies have grown at an annual rate of 25% since 2003. The money in the developed markets is moving from active to passive strategies. With Index based investment gaining prominence in India, the quest for superior risk-adjusted returns over traditional indices has given rise to smart beta index strategies.

Smart beta defines a set of investment strategies that emphasizes the use of alternative index construction rules to traditional market capitalization-based indices. Smart beta emphasizes capturing investment factors or market inefficiencies in a rule-based and transparent way. Smart Beta adds certain quantitative filters to pure passive strategies that can induce outperformance over time.