India’s M utual Fund sector is undergoing a structural shift toward passive investing: as of September 2025, passive funds (ETFs and index funds) accounted for approximately 17.1 % of quarterly average assets under management, up from 7 % in FY20, according to a report by Motilal Oswal. ETFs grew at a 28 % CAGR and index-fund folios rose 81 % over FY21-24. The trend suggests investors are favouring low-cost, benchmark-linked vehicles amid market volatility.