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India’s passive-fund share of equity AUM rises to 17.1% as ETFs gain momentum

As of September 2025, passive Mutual Fund Vehicles (index funds and ETFs) in India accounted for approximately 17.1% of the total quarterly average equity assets under management, up from about 7% in FY2020, according to a report by Motilal Oswal. The growth reflects surging investor interest in low-cost index-linked products amid volatile markets and evolving regulatory support. ETFs in India logged a CAGR of 28% over the past four years, while index-fund folios alone grew by 81% from FY2021–24.
Fund houses are now allocating more resources to passive strategies given these structural flows.
Tags:
- mutual_funds
- india
positive
India’s passive-fund share of equity AUM rises to 17.1% as ETFs gain momentum

As of September 2025, passive Mutual Fund Vehicles (index funds and ETFs) in India accounted for approximately 17.1% of the total quarterly average equity assets under management, up from about 7% in FY2020, according to a report by Motilal Oswal. The growth reflects surging investor interest in low-cost index-linked products amid volatile markets and evolving regulatory support. ETFs in India logged a CAGR of 28% over the past four years, while index-fund folios alone grew by 81% from FY2021–24.
Fund houses are now allocating more resources to passive strategies given these structural flows.
Tags:
- mutual_funds
- india
1 min read
93 words

Passive equity funds in India now hold 17.1% of AUM, marking a structural shift toward low-cost index investing.
As of September 2025, passive Mutual Fund Vehicles (index funds and ETFs) in India accounted for approximately 17.1% of the total quarterly average equity assets under management, up from about 7% in FY2020, according to a report by Motilal Oswal. The growth reflects surging investor interest in low-cost index-linked products amid volatile markets and evolving regulatory support. ETFs in India logged a CAGR of 28% over the past four years, while index-fund folios alone grew by 81% from FY2021–24.
Fund houses are now allocating more resources to passive strategies given these structural flows.

As of September 2025, passive Mutual Fund Vehicles (index funds and ETFs) in India accounted for approximately 17.1% of the total quarterly average equity assets under management, up from about 7% in FY2020, according to a report by Motilal Oswal. The growth reflects surging investor interest in low-cost index-linked products amid volatile markets and evolving regulatory support. ETFs in India logged a CAGR of 28% over the past four years, while index-fund folios alone grew by 81% from FY2021–24.
Fund houses are now allocating more resources to passive strategies given these structural flows.
Tags:
- mutual_funds
- india
- mutual_funds
- india
- passive investing
- ETFs
- asset management