Business
In 2025, more retail investors in India are choosing exchange-traded funds (ETFs) and index funds for their low costs and transparency.
ETF trading has exploded—from ₹51,000 crore in FY20 to a huge ₹3.83 lakh crore by FY25.
By October, ETF assets under management crossed the ₹10 lakh crore mark, showing just how popular these options have become.
What else is trending?
Index funds saw their assets jump 16.4% this year to ₹3.2 lakh crore—outperforming both Sensex and Nifty returns.
According to a note from Zerodha Fund House, equity ETFs accounted for 25 lakh new folios in the last 12 months.
Gold ETFs also got a boost, with folios up 56% thanks to global uncertainty.
Analysts think this passive investing wave will keep growing into 2026 as more people get comfortable investing online and learn about these options—passive fund AUM has grown from ₹1.9 lakh crore in 2019 to ₹13.7 lakh crore today!