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Passive MF adoption hits 68% in India
Rapid growth in India’s passive mutual funds reflects increasing investor preference for low-cost, diversified investing.
India’s passive mutual fund segment has seen a six-fold jump in assets under management to ₹12.2 lakh crore in 2025. Investor preference for low-cost, diversified portfolios drove the increase, with 68% of investors now holding passive funds, up from 61% in 2023. Around one-third of investors still favor active strategies. This trend suggests a long-term shift toward cost-efficient, steady market exposure, making passive funds the preferred choice for many retail and institutional investors.