Passive AUM Surges to ₹12.41 Lakh Crore, Making Up 16.59% of Industry Total

The passive mutual fund segment in India has witnessed robust growth, with assets under management (AUM) reaching ₹12.41 lakh crore as of June 2025. This segment now makes up 16.59% of the mutual fund industry's total AUM of ₹74.49 lakh crore, driven by increasing investor preference for cost-effective and diversified investment options.

Key Growth in Passive Fund Categories

The 21.41% year-on-year growth from ₹10.22 lakh crore in June 2024 to ₹12.41 lakh crore highlights rising traction in passive instruments. Equity ETFs dominate the passive space, holding ₹7.13 lakh crore or 57% of the passive AUM. Equity index funds follow with ₹1.86 lakh crore, and target maturity index funds hold ₹1.03 lakh crore. Gold and silver ETFs have grown as well, with respective AUMs of ₹64,833 crore and ₹19,135 crore.

Performance of Categories by Fund Flows

In June 2025, passive funds saw net inflows of ₹3,997 crore. Equity index funds led with ₹2,523 crore, while Gold and Silver ETFs attracted ₹2,081 crore and ₹2,005 crore, respectively. However, Equity ETFs faced outflows of ₹625 crore, and target maturity funds saw the largest outflow at ₹1,106 crore. Debt ETFs posted outflows of ₹499 crore.

Scheme Numbers Reflect Sector Growth

There are 642 passive schemes currently. Equity index funds lead with 212 schemes, followed by equity ETFs at 191 and target maturity funds at 96. Other categories include 39 FoFs in active overseas funds and 13 in passive overseas funds, showing growing diversification in offerings.

Read More: Top Fund Houses Derive Over 80% of AUM from T30 Cities; SBI, ICICI Pru, and HDFC Lead the Pack!

Passive Investing in India

The increasing AUM in passives signals a maturing investor base seeking cost efficiency. While equity ETFs saw outflows, growing investor appetite for ETFs in precious metals and international exposure shows broader adoption of passive strategies. The variety of new schemes further suggests deepening penetration.

Conclusion

India’s passive mutual fund segment has grown significantly, with the AUM reaching ₹12.41 lakh crore and accounting for 16.59% of the industry. This momentum reflects evolving investor behaviour and a tilt towards efficient, low-cost options across various asset classes.

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. 

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