Nippon India MF Shines in Passive Funds: AUM Reaches ₹1.65 Lakh Crore

The Indian mutual fund industry has witnessed remarkable growth, with passive funds emerging as a dominant force. Nippon India Mutual Fund has achieved a significant milestone, commanding an Assets Under Management (AUM) of ₹1.65 lakh crore in passive funds alongside a robust 1.45 crore folios. This reflects not just Nippon’s leadership but also the broader industry trend towards index-based investing.

The Rise of Passive Funds in India

The overall AUM of the mutual fund industry reached nearly ₹69 lakh crore in December 2024, a substantial portion of which has come from passive funds. In terms of investor folios, passive funds now account for 3.89 crore folios, showcasing their growing popularity among retail and institutional investors alike. This shift towards passive investing highlights its appeal as a simple and cost-effective investment avenue.

Nippon India MF’s Record-Breaking Figures

Within this burgeoning market, Nippon India Mutual Fund has solidified its position. With ₹1.65 lakh crore AUM and an impressive 1.45 crore folios in the passive funds category, the fund house has demonstrated exceptional growth. This success underscores its ability to cater to evolving investor preferences and capture the opportunities presented by the rise of passive investing.

What Drives the Growth of Nippon India MF?

1. Expansive Product Range:
   Nippon offers a comprehensive suite of ETFs and index funds, providing investors with multiple options to diversify across asset classes.
2. Cost Efficiency:
   Low expense ratios make Nippon’s passive funds an attractive choice for cost-conscious investors seeking to maximise returns.
3. Investor-Centric Approach:
   Through widespread financial education initiatives and a robust distribution network, Nippon has reached a diverse audience, including those in smaller cities and towns.

Passive Funds: A Game-Changer for the Industry

The growing traction of passive funds is a testament to their ability to provide market returns with minimal cost and effort. These funds are particularly appealing in volatile markets, where their low-risk, index-tracking nature offers stability and transparency.

While passive funds do not aim to outperform indices, their scalability and simplicity make them a valuable addition to an investor’s portfolio, especially for long-term financial goals.

Conclusion

Nippon India Mutual Fund’s growth in passive funds, with ₹1.65 lakh crore AUM and 1.45 crore folios, is a reflection of the broader industry shift. The mutual fund industry’s AUM of ₹69 lakh crore, with 3.89 crore folios in passive funds, highlights how investors increasingly favour simplicity, transparency, and cost efficiency.

As passive funds grow by leaps and bounds, they represent not just a trend but a fundamental change in the way Indians approach investing.

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. 

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