New Delhi, June 25 -- A comparison between the UTI Nifty 50 Index Fund, India's largest Nifty 50 index fund with an AUM of Rs.27,827 crore, and the ICICI Prudential Large Cap Fund, the largest large-cap fund with an AUM of Rs.76,297 crore, offers a useful illustration of how these two approaches differ.

While both funds primarily invest in large-cap companies, their investment styles differ fundamentally. UTI Nifty 50 Index Fund passively tracks the Nifty 50 Index, whereas the ICICI Prudential Large Cap Fund is actively managed to outperform its benchmark through selective stock picking.

Historical performance data shows that the actively managed fund has delivered better returns over the years.

A Rs.1 lakh invested in the UTI Nifty 50...