India’s passive investment landscape has experienced significant expansion over the past six years, with assets under management (AUM) rising 6.4 times to ₹12.2 lakh crore, according to the Motilal Oswal Mutual Fund’s Passive Survey 2025. The survey, included over 3,000 investors and 120 distributors nationwide, highlights a marked rise in the prevalence of passive funds, with 68% of investors now holding at least one such fund, compared to 61% in 2023. Advertisement

Index funds and exchange-traded funds (ETFs) are increasingly becoming core components of investors’ long-term portfolios. The report shows passive fund AUM has grown at a compound annual growth rate (CAGR) of 36% since 2019, and 26% annually since 2023, driven by sustained interest from both retail and advisory investors.

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