A survey by Motilal Oswal, conducted between August and September 2025 across 3,000 investors, revealed that 55% increased their passive allocations last year, and 72% plan to raise them further this fiscal. What’s notable is the long-term conviction among investors — nearly 85% intend to hold passive funds for more than three years, suggesting that investors see these products as long-term wealth-building tools rather than short-term trading vehicles. Advertisement

Passive fund assets in India have grown from Rs 1.91 lakh crore in 2019 to Rs 12.2 lakh crore as of August 2025 — a 6.4-fold rise in six years and a 26% compound annual growth rate (CAGR) since 2023. According to AMFI data, passive assets rose 0.2% month-on-month in August 2025 to Rs 12.50 lakh crore, driven by Rs 11,437 cror

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