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.

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Passive investing wave in India