Archive · 26 Sep 2025
Passive Funds Surge as Investors Favor Low-Cost Strategies
Passive funds are becoming more popular in India.
These funds aim to copy the market's performance, like the Nifty 50.
This strategy is simple and cheaper than picking individual stocks.
The amount of money in these funds has grown a lot, with more people investing.
The rise of digital platforms has made it easier for everyone to invest.
Domestic investors are also contributing more, while foreign investors are taking out some money.
Overall, passive funds are a way for people to invest in India's growth.
Passive fund AUM reached Rs 12.19 lakh crore in August 2025.
Passive AUM share of the industry grew to 16% in August 2025.
Investor participation is up, with nearly 4.9 lakh new investors in August 2025.
Systematic Investment Plans (SIPs) are common for passive fund investments.
Domestic institutional investors contributed Rs 7.3 lakh crore over the past 12 months.
- Who
- Indian investors and fund managers
- What
- Passive funds are increasing in popularity and AUM in India.
- When
- August 2025
- Where
- India
- Why
- Investors are shifting towards low-cost, diversified investment strategies.
- Passive Fund AUM
- Rs 12.19 lakh crore in August 2025
- Passive AUM Growth (Year-on-Year)
- 11%
- Passive AUM Share of Industry
- 16% in August 2025
- New Investors in August 2025
- Nearly 4.9 lakh
- Total Investor Base
- 5.64 crore in August 2025
- Monthly SIP Flows
- Rs 28,265 crore
- Domestic Institutional Investor (DII) Inflows (12 months)
- Rs 7.3 lakh crore
- Foreign Portfolio Investor (FPI) Outflows (12 months)
- Rs 3.8 lakh crore