India’s mutual fund landscape: Passive investing gains momentum; ETFs, index funds see record inflows

India’s mutual fund sector is seeing a significant shift towards passive investing, with investors favoring long-term, buy-and-hold strategies. Passive funds, tracking market indices, have surged in popularity due to their low costs, with their share in AUM rising to 17.1% by September 2025. Despite a recent moderation in inflows, long-term prospects for passive investing remain strong.