India’s passive mutual-fund share crosses 17 % of equity AUM by Sept 2025

Passive investing in India hits 17.1 % of equity AUM, signaling major shift from active funds.

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India’s passive mutual-fund share crosses 17 % of equity AUM by Sept 2025

India’s passive mutual-fund share crosses 17 % of equity AUM by Sept 2025
India’s Mutual Fund sector is undergoing a structural shift toward passive investing: as of September 2025, passive funds (ETFs and index funds) accounted for approximately 17.1 % of quarterly average assets under management, up from 7 % in FY20, according to a report by Motilal Oswal. ETFs grew at a 28 % CAGR and index-fund folios rose 81 % over FY21-24. 
The trend suggests investors are favouring low-cost, benchmark-linked vehicles amid market volatility.
Tags:
  • mutual_funds
  • India