Net Inflows in Passive Funds Doubled in FY25, Extending 48-Month Streak of Inflows

According to the latest AMFI annual report, passive funds in India have achieved net inflows for 48 consecutive months, including the entirety of FY25. The data reveals that net inflows for passive schemes rose sharply to ₹1.4 lakh crore in FY25, an increase of more than 100% over the ₹61,000 crore recorded in FY24. This surge marks the fourth continuous year of monthly inflows into passive investment products.

Assets Under Management See Strong Growth

Alongside the significant increase in net inflows, the total assets under management (AUM) in passive funds also witnessed robust growth. The AUM grew by 22.7% year on year, rising from the previous total to ₹11.47 lakh crore as of March 2025. This expansion underlines the growing acceptance of passive strategies among Indian investors.

New Passive Fund Launches on the Rise

The industry launched a total of 150 new passive investment schemes during FY25. These included 102 index funds, 3 gold exchange-traded funds, and 45 other exchange-traded funds. Together, these new schemes collected ₹15,056 crore, accounting for 11% of the year’s total net inflows. In comparison, FY24 saw 77 new launches that raised ₹4,214 crore. This demonstrates a significant uptick in both the volume and scale of new passive offerings.

Index Funds Lead in Growth Rate

Index funds witnessed the most dramatic growth among passive categories. Inflows into index funds increased by 278%, reaching ₹59,306 crore in FY25, up from ₹15,690 crore in FY24. This segment’s popularity continues to expand, driven by investor demand for broad-market exposure with relatively lower costs.

Gold ETFs and Other ETFs Also Gain Traction

Gold exchange-traded funds (Gold ETF) also experienced impressive growth. Inflows climbed 2.75 times from the previous year to ₹14,852 crore in FY25, compared to ₹5,248 crore in FY24. Other exchange-traded funds saw inflows increase from ₹42,894 crore to ₹68,227 crore, reinforcing the broader trend of investor preference for passive instruments.

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

Year-on-Year Comparison: Net Inflows in Passive Fund Doubled in FY25 

Conclusion

FY25 marked a turning point in the passive fund landscape in India, with net inflows doubling and new schemes gaining traction. With consistent monthly inflows for four years and rising investor participation, passive investment options continue to expand their presence in the Indian mutual fund industry.

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