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India's passive MF AUM grows 6-fold

Passive mutual funds in India have hit a record ₹12.2 lakh crore in AUM in 2025, a sixfold jump since 2019. Around 68% of investors now favor passive products, attracted by low costs and diversified exposure. Distributors plan to boost passive allocations in FY25-26, signaling growing mainstream adoption. Is this shift a long-term trend or a temporary preference? The data suggests that cost-efficient, diversified investing is becoming the norm for Indian mutual fund investors.
Companies:
- Nippon India MF
- SBI Mutual Fund
- HDFC MF
- ICICI Prudential MF
Tags:
- passive mutual funds
- India
positive
India's passive MF AUM grows 6-fold

Passive mutual funds in India have hit a record ₹12.2 lakh crore in AUM in 2025, a sixfold jump since 2019. Around 68% of investors now favor passive products, attracted by low costs and diversified exposure. Distributors plan to boost passive allocations in FY25-26, signaling growing mainstream adoption. Is this shift a long-term trend or a temporary preference? The data suggests that cost-efficient, diversified investing is becoming the norm for Indian mutual fund investors.
Companies:
- Nippon India MF
- SBI Mutual Fund
- HDFC MF
- ICICI Prudential MF
Tags:
- passive mutual funds
- India
1 min read
74 words

Passive mutual funds see strong acceptance among Indian investors. Low costs and diversification features are fueling rapid growth, with AUM reaching ₹12.2 lakh crore in 2025.
Passive mutual funds in India have hit a record ₹12.2 lakh crore in AUM in 2025, a sixfold jump since 2019. Around 68% of investors now favor passive products, attracted by low costs and diversified exposure. Distributors plan to boost passive allocations in FY25-26, signaling growing mainstream adoption. Is this shift a long-term trend or a temporary preference? The data suggests that cost-efficient, diversified investing is becoming the norm for Indian mutual fund investors.

Passive mutual funds in India have hit a record ₹12.2 lakh crore in AUM in 2025, a sixfold jump since 2019. Around 68% of investors now favor passive products, attracted by low costs and diversified exposure. Distributors plan to boost passive allocations in FY25-26, signaling growing mainstream adoption. Is this shift a long-term trend or a temporary preference? The data suggests that cost-efficient, diversified investing is becoming the norm for Indian mutual fund investors.
Companies:
- Nippon India MF
- SBI Mutual Fund
- HDFC MF
- ICICI Prudential MF
Tags:
- passive mutual funds
- India
- passive mutual funds
- India
- AUM growth
- low-cost investing
- diversified portfolios