New Delhi: Assets under management of passive mutual funds in India reached Rs 12.2 lakh crore in 2025, marking a 6.4-fold increase since 2019 and a compound annual growth rate of approximately 36 per cent, a report said on Monday.

Around 76 per cent of retail mutual fund investors are aware of index funds or ETFs, with 68 per cent holding at least one passive product in 2025, an increase from approximately 61 per cent in 2023, the report from Motilal Oswal Mutual Fund said.

The broking house said that despite this improvement in reception, about one-third of investors remain outside the passive mutual fund universe, citing higher confidence in active funds or unfamiliarity with passive products.

Approximately 54 per cent of investors cited low costs, 46 per cent mentioned diversificati

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