India's passive MF AUM grows 6-fold

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.

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India's passive MF AUM grows 6-fold

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