India’s Largest Passive Mutual Funds: SBI, Nippon, and UTI Dominate the Space

Passive investing has gained traction in India, with investors increasingly turning to index funds and exchange-traded funds (ETFs) to gain exposure to broad market movements. As of December 2024, passive assets under management (AUM) in the mutual fund industry reached ₹11.29 lakh crore, making up 16.29% of the total AUM.

These 3 fund houses—SBI Mutual Fund, Nippon India Mutual Fund, and UTI Mutual Fund—have emerged as the top players in this segment. These funds have established a strong presence across index funds, ETFs, and fund of funds, capturing a significant portion of the passive investment market.

SBI Mutual Fund

SBI Mutual Fund dominates the passive investment landscape, commanding an AUM of ₹3.66 lakh crore. Passive funds contribute 33% of SBI MF’s total AUM, showcasing its strong position in index investing.

In the ETF category, SBI MF leads with an AUM of ₹3.35 lakh crore, solidifying its presence as a major player in this segment. The fund house also holds a notable position in index funds, managing assets worth ₹30,036 crore.

Nippon India Mutual Fund

Nippon India Mutual Fund ranks 2nd in passive investments with a total AUM of ₹1.67 lakh crore. Passive funds make up 29% of its total assets, indicating a strong focus on this investment strategy.

In the ETF market, Nippon India MF holds the second-largest AUM at ₹1.52 lakh crore, further strengthening its foothold. Notably, in commodity ETFs, which include gold and silver ETFs, Nippon India MF leads the market with ₹20,444 crore in AUM.

UTI Mutual Fund

UTI Mutual Fund holds the 3rd position in the passive investment space, with an AUM of ₹1.49 lakh crore. However, passive funds contribute a higher proportion (42%) of its total AUM. 

In index funds, UTI MF ranks third with an AUM of ₹36,731 crore, trailing only behind ICICI Prudential MF and HDFC MF. It also secures the third position in the ETF category, managing assets worth ₹1.13 lakh crore.

Other Leading Players in Passive Investing

Beyond the top 3, other major fund houses have also built substantial passive investment portfolios:

• ICICI Prudential MF: ₹1.23 lakh crore in passive AUM, with the highest AUM in index funds at ₹38,784 crore.
• Edelweiss MF: ₹77,955 crore in passive AUM, with a strong presence in ETFs.
• HDFC MF, Kotak MF, Aditya Birla Sun Life MF, Motilal Oswal MF, and Bandhan MF are also among the top 10 players in the segment.

The Growing Popularity of Index Funds and ETFs

Index funds and ETFs have been instrumental in the rise of passive investing. Here’s how different fund houses are positioned in these categories:

Index Funds: Market Leaders

• ICICI Prudential MF: ₹38,784 crore
• HDFC MF: ₹38,088 crore
• UTI MF: ₹36,731 crore
• SBI MF: ₹30,036 crore
• Aditya Birla Sun Life MF: ₹21,409 crore

ETF Market Share

• SBI MF: ₹3.35 lakh crore
• Nippon India MF: ₹1.52 lakh crore
• UTI MF: ₹1.13 lakh crore
• ICICI Prudential MF: ₹84,284 crore
• Edelweiss MF: ₹58,703 crore

Commodity ETFs Leadership

• Nippon India MF: ₹20,444 crore
• ICICI Prudential MF: ₹9,751 crore
• HDFC MF: ₹6,928 crore
• SBI MF: ₹6,435 crore
• Kotak MF: ₹5,951 crore

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.