New Delhi, Aug. 22 -- Are investors increasingly using passive funds to achieve their financial goals? Passive funds attracted Rs.1.29 lakh crore in net inflows, including Rs.1.07 lakh crore into Exchange Traded Funds (ETFs) and Rs.22,395 crore into index funds in the year-to-date (YTD) 2026. Within ETFs, the Nifty/Sensex category attracted Rs.61,054 crore, followed by Gold ( Rs.39,475 crore) and Silver ( Rs.11,211 crore).

Assets Under Management (AUM) of passive funds surged 24.4% year-on-year to Rs.15.15 lakh crore at the end of July 2026, data with National Stock Exchange (NSE) showed. They now account for 18% of the overall AUM of the mutual fund industry. Index funds are not merely used to replicate markets, but to construct diversi...