A Decade of 7x Development and the Rise of Passive Investing, ETCFO
Mumbai, The entire Belongings Below Administration (AUM) of the Indian Mutual Fund (MF) trade stand at Rs 74.40 lakh crore, marking greater than a sevenfold progress over the previous decade, a report stated on Monday.
Of the whole AUM, fairness instructions the biggest share at 59.94 per cent, adopted by debt at 26.53 per cent, hybrid at 8.28 per cent, and different classes accounting for five.26 per cent, based on Motilal Oswal Mutual Fund.
In accordance with the report, a key growth within the trade has been the regular rise of passive investing, which now accounts for roughly 17 per cent of complete AUM.
Whereas energetic funds proceed to dominate in absolute phrases, the growing share of passive methods displays broader adoption of low-cost, clear, and benchmark-aligned approaches, the report said.
Within the quarter ending June 2025, complete estimated web inflows stood at Rs 3.98 lakh crore.
This was largely led by the debt section, which drew Rs 2.39 lakh crore, reversing the earlier quarter’s outflows. Equities contributed Rs 1.33 lakh crore, whereas commodities added Rs 9,000 crore.
In the meantime, energetic methods accounted for Rs 3.62 lakh crore of complete inflows, with passive funds contributing Rs 36,000 crore, the report highlighted.
“This quarter displays a notable shift in portfolio allocation – a rising tilt towards well-diversified, resilient portfolios, complemented by a measured return to debt,” stated Pratik Oswal, Head – Passive Enterprise, Motilal Oswal Asset Administration Firm Ltd. (MOAMC).
What’s notably encouraging is the growing traction seen in passive investing.
Indian buyers are step by step recognising the structural advantages of passive funds -simplicity, price effectivity, and alignment with market benchmarks, he added.
Inside equities, broad-based funds emerged because the dominant class, garnering Rs 86,000 crore in web inflows.
This class captured 64 per cent of complete fairness flows – 55 per cent from energetic funds and a notable 106 per cent from passive – indicating elevated allocation to passive fairness methods, the report famous.
Amongst energetic broad-based funds, Flexi Cap led with Rs 15,800 crore, adopted by Small Cap at Rs 12,000 crore and Mid Cap at Rs 10,800 crore.
Within the passive area, Massive Cap funds remained essentially the most allotted section, reflecting continued give attention to blue-chip benchmarks.
Thematic mutual funds, nevertheless, skilled a web outflow of Rs 2,400 crore, in distinction to Rs 8,400 crore inflows within the previous quarter.
–IANS
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