Active large cap funds are facing the heat from passive products but on the midcap side of things. The belief is that there is a lot of scope for a fund manager's discretion to create alpha. And alpha means the return over and above the benchmark.

So, the question to ask is how well is this discretion being applied? How much is too little and what is too much? So, a good idea to check conviction is to see how many stocks a portfolio holds.

Watch accompanying video of CNBC-TV18’s Sumaira Abidi for more details.

(Edited by : Priyanka Rathi)