In January 2025, Gold Exchange-Traded Funds (ETFs) played a pivotal role in revitalising passive funds, leading to a significant surge in inflows.
This growth not only contributed to a sharp increase in Assets Under Management (AUM) but also resulted in a notable rise in folio growth.
As investors sought safer havens amid market volatility, Gold ETFs emerged as a key driver for this trend, further reinforcing the growing popularity of passive investing. Check more details on the performance and trends.
The folio growth for passive funds in January 2025 showed a positive trend compared to January 2024. The table below provides a comparison of the folio growth across 12 different categories of passive funds.
| Passive Mutual Fund Schemes | Folios Jan-25 (in Numbers) | Folios Jan-24 (in Numbers) | Growth (%) |
| Silver ETF | 6,19,844 | 1,89,756 | 226.65% |
| Equity oriented Index Funds (Domestic) | 1,22,27,516 | 62,53,215 | 95.54% |
| Equity oriented ETFs (International ETFs) | 7,35,244 | 3,85,133 | 90.91% |
| Other Index Funds | 94,728 | 62,741 | 50.98% |
| Equity oriented ETFs (Domestic ETFs) | 1,55,09,092 | 1,06,02,197 | 46.28% |
| Gold ETF | 64,97,498 | 49,72,469 | 30.67% |
| Income/Debt Oriented Index Funds (Ex-TMIF) | 18,757 | 15,285 | 22.72% |
| Income/Debt Oriented Index Funds (TMIF) | 1,69,458 | 1,41,111 | 20.09 |
The overall AUM for passive mutual fund schemes as of January 2025 stood at ₹11,18,927.68 crore, marking a growth of 26.63% from ₹8,83,591.32 Crore in January 2024.
| Passive Mutual Fund Schemes | AUM Jan-25 (₹ Crore) | AUM Jan-24 (₹ Crore) | Growth (%) |
| Silver ETF | 13,565.58 | 3,704.54 | 266.19% |
| Gold ETF | 51,839.39 | 27,778.08 | 86.62% |
| Equity oriented Index Funds (Domestic) | 1,58,301.64 | 89,217.72 | 77.43% |
| Equity oriented ETFs (International ETFs) | 14,027.08 | 10,128.71 | 38.49% |
| Equity oriented ETFs (Domestic ETFs) | 6,39,212.95 | 5,20,654.37 | 22.77% |
Note: This table presents data for the top 5 ETFs under the Passive Mutual Fund Scheme, sourced from AMFI.
In January 2025, Silver ETFs led the AUM growth with an impressive 266.2%, followed by Gold ETFs at 86.6% and equity-oriented domestic index funds at 77.4%. A total of 11 out of 12 passive fund categories saw growth in their AUM, with the only exception being debt index funds (ex-TMIF), which saw a slight contraction of -7.43%.
In terms of folio growth, Silver ETFs again took the lead, with a remarkable 226.65% growth, followed by equity-oriented domestic index funds (95.54%) and equity-oriented international ETFs (90.91%). While most categories experienced folio expansion, the only declines were seen in Fund of Funds (FOFs) investing in overseas active and passive funds.
In conclusion, January 2025 witnessed a strong resurgence in the passive fund market, with Gold and Silver ETFs playing a crucial role in driving both AUM and folio growth. Despite the broader market challenges, these ETFs have proven resilient, capturing investor interest as safe-haven assets.
The overall performance of passive funds reflects continued investor confidence in these low-cost, diversified investment vehicles, underlining the growing shift towards passive investing strategies.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Feb 15, 2025, 4:57 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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