The total number of passive funds tracking Nifty indices in India have crossed a milestone of 200.
Currently, there are 110 ETFs and 91 index funds in India tracking 72 unique Nifty indices.
Out of these funds, 166 are equity passive funds and 35 are debt passive funds issued by 24 different asset management companies. Nifty indices linked passive funds account for 76 per cent market share in terms of total number of equity and debt passive funds and 73 per cent market share in terms of total AUM of equity and debt funds.
The passive funds in India has grown at a CAGR of 55 per cent over the last five years with a total AUM of ₹6.15 lakh crore as of October-end against ₹0.68 lakh crore as of October-end 2017.
Of this, equity accounts for ₹4.15 lakh crore against ₹0.61 lakh crore in October 2017 while debt and commodity increased to ₹1.38 lakh crore and commodity ₹0.21 lakh crore against ₹0.02 lakh crore and ₹0.05 lakh crore logged in October 2017.
During the same period, number of passive products have grown 3.37x to 280 from 83 as on October-end 2017.
Inflows in passive funds amount to ₹0.93 lakh crore as against ₹1.28 lakh crore in FY’22.
In the current financial year till October-end, 52 new passive funds (ETFs and Index funds) have been launched as against 81 new funds in FY 21-22.
Total AUM of passive funds
Total AUM of equity and debt passive funds tracking Nifty indices was ₹4.35 lakh crore. For these passive funds, there were 36 Nifty 50 passive funds.
Ashishkumar Chauhan, MD & CEO, NSE said the exchange strongly believes that passive funds are well suited for retail and institutional investors to invest in capital markets.
Mukesh Agarwal, CEO, NSE Indices said investor interest in passive funds is increasing as reflected by a large number of new folios created in the last couple of years. Inflows into the passive funds have been strong for a few years and trading volumes of ETFs are also rising steadily, he said