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Indian ETFs Cross Rs 12 Lakh Crore in AUM | Passive Investing

By Market DeskIndian ETFs Cross Rs 12 Lakh Crore in AUM | Passive Investing

Indian passive investing hits a milestone as ETF and index fund AUM crosses Rs 12 lakh crore, driven by low costs and institutional inflows.

Indian mutual fund assets under management in Exchange Traded Funds and index funds surpassed Rs 12 lakh crore. This milestone reflects a shift toward passive investing across the domestic market.

Growth Drivers in Passive Strategies

Investors are favoring low-cost and transparent investment vehicles that track market indices rather than active fund management. Key drivers include growing retail awareness regarding lower expense ratios and reduced manager risk.

Institutional Inflows and Market Expansion

Institutional participation, specifically from retirement funds like the EPFO, provided a massive boost to ETF inflows. Passive funds are becoming an essential component of diversified portfolios as the equity market expands.

This adoption signals a maturing investment landscape in the country.

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