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AUM of ETFs and index funds tracking Nifty 50 index in India has crossed a new milestone of Rs. 2 lakh crore. With this, the Nifty 50 index linked passive funds account for 40% of the total passive funds.
In a press release, NSE said that AUM of passive funds in India has grown by 57% in five years i.e. from Rs. 52,400 crore in March 2017 to Rs.5 lakh crore in March 2022. “During this period, the number of passive funds available in India has also grown from 84 to 228. The FY2021-22 was a landmark year for the Indian passive funds industry with record fund inflows of Rs. 1.28 lakh crore. In addition, 82 new passive products (ETFs + index funds) were launched last financial year. Encouragingly there has been significantly higher retail participation with more than 1 crore new folios created in FY 2021-22, representing 60% of all outstanding folios of 1.73 crores as on March 31, 2022. The steady rise of passive funds AUM tracking the Nifty indices has mirrored the overall growth of the Indian passive fund AUM with Nifty indices accounting for about 74% market share in terms of AUM of equity & debt passive funds industry in India.”
Vikram Limaye, MD & CEO, NSE said, “We strongly believe that passive funds are well suited for retail and institutional investors to invest in capital markets. We will continue with our efforts to promote passive funds. We are confident that with the continued focused efforts of all stakeholders, we will achieve many more milestones in the future.”
Mukesh Agarwal, CEO, NSE Indices said, “Adoption of passive funds in India is increasing on a continuous basis as evident from the large number of new folios created in the last couple of years. Inflows into the passive funds have been strong in the last financial year and trading volumes of ETFs are also rising steadily.”
