High net-worth individuals (HNIs) are increasingly investing in passive funds as wealth managers give significant weightage to costs.
The share of exchange traded funds (ETFs) in the total HNI assets under management (AUM) has grown to 1.8% in October this year as compared with 0.3% in March 2018.
On the other hand, retail participation in passive funds is still at a nascent stage.
The share of ETFs in the total retail AUM) has remained flat at around 0.4% since March 2018.