Passive funds gain traction now 17 percent of India’s mutual fund industry

As of June 2025, passive fund schemes (including index and ETF products) account for around 17 % of India’s mutual-fund industry assets under management (AUM). According to industry data, the total MF industry size stood at about ₹74.40 lakh crore, marking a seven-fold increase over the past decade. The rising share of passive investing reflects growing investor awareness, lower cost structures, and improved access through digital platforms. While thematic and sectoral funds continue to attract flows, passive funds are increasingly viewed as core portfolio building blocks by retail and institutional players alike.