With inflows from institutional investors such as Employees’ Provident Fund Organisation, the share of passive funds in the total assets under management of mutual funds grew to 13% in March 2022, as compared with 3% in March 2017.
While the trend of institutional investing will continue to grow, high net-worth individuals (HNIs) are increasingly investing in passive funds as wealth managers give significant weightage to costs.
However, retail participation in passive funds is still at a nascent stage.
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