Passive fund assets could reach Rs 25 trillion by 2025, says Finity

In the last five years, the Indian passive fund assets have grown 18 times from just Rs 22,409 crore in March 2016, says the investment platform

Passive fund assets will grow by 6 times from the current levels of Rs 4 trillion to Rs 25 trillion by 2025, Finity, an investment platform has projected.

In the last five years, the Indian passive fund assets have grown 18 times from just Rs 22,409 crore in March 2016.

Underperformance of active funds, low costs and regulatory policies have led to this growth, Finity said.

As of September 2021, there were around 160 passive schemes in India with cumulative assets under management (AUM) of Rs 4.13 trillion, making them the biggest category across the equity and debt funds.

“Passive