Passive investing has gained momentum in India, driven by the rise of low-cost exchange-traded funds (ETFs) and index funds tracking key benchmarks like the Nifty 50 and Sensex.
According to Morningstar, assets under management (AUM) in passive products have increased nearly sixfold in the past five years, with the number of passive funds growing from 149 in 2020 to 537 as of December 2024.
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