Archive · 29 Jul 2026

Passive Fund Folio Additions Hit Lowest Since 2019

Passive Fund Folio Additions Hit Lowest Since 2019

In the first quarter of the fiscal year 2027, the number of new accounts (folios) in passive investment funds in India dropped to the lowest level since 2019.

This is a big change from the previous quarter, where there were about 6.9 million new accounts.

Meanwhile, active equity funds and hybrid schemes saw significant increases in new accounts.

Experts say this shift is because gold and silver prices fell, making those investments less attractive.

Instead, investors are putting more money into equity funds, which have been doing well.

Some investors also prefer active funds because they can pick specific stocks that are performing well.

This shows a trend where investors are moving away from passive funds and towards active management strategies.

Sources