Passive investing wave in India

Sat, 16 May 2026 00:00:00 +0000

The passive investing wave in India describes the structural shift since approximately 2018 in which index-tracking mutual fund schemes (comprising exchange-traded funds (ETFs), index funds, and fund-of-funds investing in ETFs) grew from a marginal segment to a substantial component of industry AUM, with passive-fund AUM crossing approximately Rs 12 lakh crore by April 2026 (approximately 17 per cent of total industry AUM). The wave is among the most consequential structural shifts in the Indian mutual fund industry of the post-2017 era, comparable in importance to the direct plan adoption trajectory and the SIP growth story , and is widely understood to be both a structural feature of mature equity markets and a specific Indian post-2017 phenomenon.

MF Lite Framework and Passive-Only AMCs in India

Tue, 12 May 2026 00:00:00 +0000

The MF Lite framework is a simplified regulatory pathway introduced by SEBI in 2021 for asset management companies (AMCs) that intend to offer exclusively passive mutual fund schemes – index funds, exchange-traded funds (ETFs), and fund of funds investing in ETFs. By reducing the minimum net worth requirement and simplifying certain governance obligations relative to the standard AMC registration framework, MF Lite lowers the entry barrier for new entrants focused on the passive investing segment and encourages competition in a space historically dominated by large, full-service AMCs.

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Passive investing wave in India

MF Lite Framework and Passive-Only AMCs in India