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AMFI data shows that individual investors account for 24% of the total passive AUM as on March 2024.
Of the total passives AUM of Rs.9.22 lakh crore, individual investors which include both retail investors and HNIs have AUM of Rs.2.17 lakh crore in March 2024. Their share in the total passive AUM grew up from 23% or Rs.1.55 lakh crore.
HNIs held majority of these assets i.e. Rs.1.60 lakh crore, which is 73% of the total individual AUM. On the other hand, the AUM of retail investors in passive funds stood at Rs.58,000 crore, indicating 27% contribution in the total individual assets.
Mumbai MFD Siddharth Gala of Anupam Wealth feels that many HNIs have been increasingly investing in index funds for market linked returns. Gala said, “Returns from active funds can go up and down with respect to the underlying benchmark. However, HNIs can expect market returns from their investment in index funds and ETFs. Also, passive funds have no underperformance risk.”
Clearly, the demand for passive funds among individual investors has been going up.
To keep you updated on passive funds, Cafemutual is holding the Cafemutual Passives Conference (CPC) 2024 on May 10 at the Taj Santacruz in Mumbai.
Themed ‘Time to take an active look’, the conference has an exciting line-up of over 20 esteemed speakers who will help you identify and understand the latest trends in the passive category.
You can visit this link to know more.
Let's check the table below to learn about individual asset contribution in the passives AUM:
|
Total Individual Share in Passives 2024 |
Total Individual Share in Passives 2023 |
|||||
|
Investor Type |
AUM in crores |
% to Total with respect to Passive AUM |
Investor Type |
AUM in crores |
% to Total with respect to Passive AUM |
|
|
High Networth Individuals |
1,59,099 |
17% |
High Networth Individuals |
1,18,624 |
18% |
|
|
Retail |
58,254 |
6% |
Retail |
36,469 |
5% |
|
|
Total |
2,17,354 |
24% |
Total |
1,55,093 |
23% |
|
