Passive Funds Surge 22% in 2025

Passive funds are like baskets of investments that follow a specific market index.

In 2025, more people put money into these funds, especially gold exchange-traded funds (ETFs).

The total money flowing into passive funds grew by 22% compared to 2024.

This is because people want to invest in something stable when the market is unpredictable.

Gold ETFs saw a big increase in investments, more than tripling from the previous year.

However, the amount of money raised through new passive funds decreased, even though there were more new funds launched.

Experts say passive funds are good for long-term investing and can help protect your money during uncertain times.

They also suggest that gold and silver can be useful for diversifying your investment portfolio, with gold being a safer option and silver being more tied to economic growth.

However, investing in gold can be tricky because of taxes.

Different forms of gold investments, like Sovereign Gold Bonds (SGBs), ETFs, mutual funds, physical gold, and digital gold, have different tax rules.

Choosing the wrong form can cut your real returns by as much as 30-50%.

SGBs are the most tax-efficient option, with tax-free capital gains at redemption after eight years.

Other forms, like physical gold and digital gold, have additional costs like GST and capital gains taxes.

It's important to understand these tax rules to make the most out of your gold investments.