The total assets of India’s passive fund industry rose 0.3% month-on-month in June to 14.82 trillion rupees (US$0.16 trillion), triggered largely by net inflows of 166.22 billion rupees.  

According to a report by NSE Indices, there were two clear trends emerging among passive investors. Firstly, most inflows went into exchange-traded funds, and secondly, investors preferred equity over other asset classes.

ETFs recorded net inflows of 166.81 billion rupees in June, while index funds recorded net outflows of 590 million rupees.

For the second quarter of the year, ETFs recorded inflows of 291.31 billion rupees, while index funds recorded 55.11 billion rupees of inflows.

Equity-oriented ETFs and index funds collectively saw net inflows of 114.23 billion rupees in June, and 408 billion rupees in the second quarter. Meanwhile, debt-related passive funds recorded net outflows of 138.23 billion rupees.