Passive funds tracking Nifty indices tops 200 | The Financial Express

Passive funds tracking Nifty indices tops 200

Nifty indices linked passive funds account for 76% market share in terms of total number of equity and debt passive funds and 73% market share in terms of total assets under management of equity and debt funds in India.

Passive funds tracking Nifty indices tops 200
Equity passives currently make up Rs 4.56 trillion in assets, debt passives Rs 1.38 trillion and commodity passives Rs 0.21 trillion. (IE)

The total number of passive funds, including ETFs and index funds, tracking Nifty indices in India has crossed 200. Currently, there are 110 ETFs and 91 index funds in India, tracking 72 unique Nifty indices issued by 24 different fund houses. Out of these, 166 are equity passive funds and 35 are debt passive funds.

Nifty indices linked passive funds account for 76% market share in terms of total number of equity and debt passive funds and 73% market share in terms of total assets under management of equity and debt funds in India.

The passive industry in India has grown at a CAGR of about 55% over the last five years with a total AUM of Rs 6.15 trillion as on October 31, 2022 as against Rs 0.68 trillion five years ago. Equity passives currently make up Rs 4.56 trillion in assets, debt passives Rs 1.38 trillion and commodity passives Rs 0.21 trillion. During the same period, number of passive products have grown 3.37x to 280 from 83 five years ago.

Fresh inflows this financial year till October in passive funds is Rs 0.93 trillion as against Rs 1.28 trillion in FY22. 52 new passive funds, including ETFs and index funds, have been launched as against 81 new funds in FY22.

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Total AUM of equity and debt passive funds tracking Nifty indices in India is Rs 4.35 trillion. For these passive funds, most widely used benchmarks are Nifty 50 (36 passive funds), Nifty Next 50 (19 passive funds), Nifty Bank (12), Nifty Midcap 150 (9), Nifty 200 Momentum 30 (8), Nifty 100 (7) Nifty IT (7), Nifty Bharat Bond indices (5).

Ashishkumar Chauhan, MD & CEO, NSE, said, “We are highly humbled by investors’ continued trust and confidence demonstrated through their investments in passive funds linked to the Nifty indices. We strongly believe that passive funds are well suited for retail and institutional investors and we will continue to focus on investor education in order to increase retail participation in passive products.

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First published on: 29-11-2022 at 00:30 IST