Passive funds grew 2X compared to active funds as per AMFI data for September 2025. Experts say the surge is due to FOMO among investors driven largely by return chasing and accessibility rather than a structural reallocation. Passive schemes, including index funds and ETFs, added around 1.2 million new accounts in September. When FoF schemes investing in passive portfolios are included, the number rises to 2.1 million new accounts. By comparison, active equity schemes saw 1.4 million new folios over the same period. Active equity funds remain dominant with about 175 million folios, nearly 70% of the industry’s total of 252 million folios. Advertisement

The rise in passive folios was propelled primarily by precious metal ETFs. Gold and silver ETFs alone added about one million new accoun

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