Overview

• Motilal Oswal Mutual Fund’s Passive Survey 2025 finds 68% of investors hold at least one passive product, up from about 61% in 2023.
• Industry passive AUM has grown more than sixfold since 2019 to Rs 12.2 lakh crore, including a 1.7x rise since March 2023.
• Awareness has widened, with 76% of respondents familiar with index funds or ETFs, though roughly one-third still avoid passives due to trust in active funds or unfamiliarity.
• Investors cite low fees, diversification, simplicity and transparency, and performance as the main reasons for choosing passive funds.
• Among distributors, 93% understand passive products, about 70% already include them in client portfolios, and most clients hold fewer than three passive funds, indicating a satellite role.