A recent investor survey by Motilal Oswal Mutual Fund highlighted that the passive funds are becoming mainstream in India with 76% of surveyed mutual fund investors are aware of Index Funds or ETFs in 2025.

It further mentioned that 68% investors have invested in at least one passive fund in 2025, up from 61% adoption in 2023. However, even with this adoption growth, one-third of investors remain outside, citing higher confidence in active funds or unfamiliarity with passive products.

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The passive industry Assets Under Management (AUM) stood at Rs 12.2 lakh crores, a 6.4-fold increase in six years (36% CAGR), from Rs 1.91 lakh crores in 2019. In just over two years since March 2023, AUM has grown 1.7 times (~26% CAGR), underscoring the accelerating adoption, the report adde

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