According to a recent report, India’s passive mutual-fund schemes—comprising index funds and ETFs—added around 2.1 million new folios in September, surpassing active equity schemes which added approximately 1.4 million. The surge was mainly driven by gold and silver ETFs, reflecting investor preference for passive exposure amid volatile markets. This marks the first time passive folios have overtaken active equity accounts, signalling a structural shift in investor behaviour. Fund houses are now expected to boost product-launches in passive format to capitalise on the trend.