India’s Passive Mutual Fund AUM Rises 21% to ₹11.13 Lakh Crore in FY25

As per the latest data released by the Association of Mutual Funds in India (AMFI), the Assets Under Management (AUM) of passive mutual funds in India reached ₹11.13 lakh crore in March 2025. 

This marks a notable increase of 21% compared to ₹9.22 lakh crore in March 2024. Passive funds now account for 16.7% of the overall mutual fund industry AUM, reflecting a growing shift towards index-linked strategies.

Equity ETFs Dominate the Passive Segment

Equity Exchange-Traded Funds (ETFs) that track domestic equity indices continue to hold the lion’s share within the passive fund category. These funds reported an average AUM of ₹6.28 lakh crore as of March 2025. Their increasing acceptance among investors can be attributed to their low-cost structure and ability to mirror the performance of benchmark indices.

Equity Index Funds: The 2nd Largest Category

Following closely behind equity ETFs are domestic equity index funds. These funds, which also track broad market indices without active management, recorded an average AUM of ₹1.57 lakh crore. This positions them as the 2nd largest category within passive investment strategies.

Debt and Commodity-Based Passives: A Mixed Picture

Debt ETFs and target maturity index funds have also made their presence felt. As of March 2025:

• Debt ETFs managed an average AUM of ₹97,349 crore

• Target Maturity Index Funds stood at ₹96,025 crore

• Gold ETFs followed with ₹57,101 crore in average AUM

In terms of inflows, debt index funds attracted ₹1,694 crore. However, target maturity funds and debt ETFs experienced net outflows of ₹1,602 crore and ₹1,116 crore, respectively.

Among commodity-oriented passive schemes:

• Silver ETFs recorded net inflows of ₹358 crore

• Gold ETFs faced net outflows of ₹77 crore

Net Inflows: Equity Passives Continue to Attract Capital

The month of March 2025 saw strong net inflows into domestic equity-based passive funds:

• Equity ETFs received ₹11,808 crore in net inflows

• Equity Index Funds attracted ₹3,461 crore

This indicates continued interest in equity passives, even as some debt and commodity passives experienced outflows.

Total Passive Schemes in the Industry

As of March 2025, there are 614 passive schemes operating in the mutual fund industry. These include:

• 196 Domestic Equity Index Funds

• 177 Domestic Equity ETFs

• 92 Target Maturity Index Funds

The remainder consists of various other schemes such as gold and silver ETFs, international ETFs, and Fund of Funds (FoFs) linked to passive strategies.

Concluding Insight

The growth in passive AUM over the past year underlines a shift in investor preference towards low-cost, rule-based investment vehicles. While equity ETFs and index funds dominate the landscape, the performance of debt and commodity passive funds presents a nuanced picture of evolving investor sentiment and market conditions.

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.