Passive Investing Boom: India’s Index Fund, ETF AUM Jumps To ₹50 Lakh Crore In 2026

Passive investing in India is witnessing explosive growth, with total assets under management in index funds and ETFs surging from ₹1.63 lakh crore in 2020 to nearly ₹50 lakh crore in 2026, according to NSE Indices. Speaking in Mumbai, NSE Indices said passive investing is gaining traction as investors increasingly prefer transparent, low-cost strategies that simply track benchmark indices rather than rely on active fund managers. The number of passive investment folios in India has also crossed 5 crore, reflecting broad retail participation. Experts, however, stress that passive investing still carries market risks and remains best suited for long-term investing.