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Indian investors increasingly shift toward passive mutual funds

Lower costs and transparency are accelerating India’s move toward passive mutual funds, reshaping long-term investment preferences.
India’s mutual fund industry is witnessing a steady shift toward passive investment strategies, mirroring trends seen in developed markets. According to industry assessments, investors are favouring index funds and exchange traded funds due to lower costs, transparency, and predictable performance. Passive assets are growing faster than actively managed schemes, supported by rising retail participation and regulatory clarity.