Passive investment instruments continued gaining traction in the Indian mutual fund space, recording strong inflows during April to September 2025, as per the AMFI data. With Exchange Traded Funds (ETFs) leading the charge, total net inflows during the first half of FY26 reached ₹68,505 crore, reflecting investor preference for cost-efficient and diversified strategies.
Nearly 85% of the ₹68,505 crore passive inflow came from ETFs, totalling ₹58,035 crore in H1 FY26. Equity ETFs contributed ₹25,960 crore, while Gold ETFs and Silver ETFs stood out with ₹14,175 crore and ₹12,929 crore, respectively.
Debt ETFs brought in ₹4,852 crore, and international ETFs added ₹117 crore. Notably, September witnessed record inflows with ₹8,363 crore into Gold ETFs and ₹5,342 crore into Silver ETFs, forming 72% of the ₹19,056 crore total for that month.
Equity-oriented index funds attracted ₹17,632 crore over 6 months, signalling consistent interest. However, debt index funds, especially Target Maturity Index Funds (TMIFs), experienced steep outflows of ₹8,619 crore. Non-TM debt index funds too saw minor outflows of ₹55 crore, pointing to cautious sentiment around fixed-income passives.
Read More: Gold ETFs See Record ₹8,363 Crore Inflows in Sept as Prices Cross ₹1 Lakh!
The average assets under management (AAUM) of passive funds rose from ₹11,55,822 crore in April to ₹12,91,635 crore by September 2025. Silver ETFs led with a 106% surge in AAUM from ₹15,089 crore to ₹31,134 crore. Gold ETFs rose 35% to ₹81,700 crore, and international ETFs, including equity and FoFs, posted 34% to 45% growth, highlighting increasing demand for geographic diversification.
From April to September 2025, AMC product offerings grew from 615 to 678 passive schemes. Equity index funds had the highest additions with 30 new launches, followed by equity ETFs with 22. This expansion reflects the industry’s strategic focus on catering to evolving investor appetite for transparent and low-cost investment vehicles.
The ₹68,505 crore inflow into passive funds in H1 FY26 confirms the strengthening shift towards ETF and index-based investing in India. Precious metal ETFs and international funds have emerged as significant growth drivers, highlighting investor interest in diversification and inflation protection.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.
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Published on: Oct 16, 2025, 1:08 PM IST
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