Passive Investment Assets Hit Rs 15.42 Lakh Crore Despite Market Dip
Despite equity market weakness, India's passive investment assets grew to Rs 15.42 lakh crore in August 2026, driven by ETFs and index funds.
In a surprising show of resilience, India's passive investment assets grew by 1.8 per cent month-on-month to reach a staggering Rs 15.42 lakh crore in August 2026. This growth occurred even as the equity markets faced a downturn, signaling a shift in investor behavior toward exchange-traded funds (ETFs) and index funds during volatile periods.
According to the October 2026 newsletter released by NSE Indices, the surge was fueled by net inflows of Rs 10,948 crore throughout the month. This trend is particularly noteworthy because the benchmark Nifty 50 index actually declined by 1.14 per cent during the same period, yet investors continued to pour money into passive products.
Commodities Lead the Charge
The biggest driver of this growth was the commodity-based passive investment segment. A combination of fresh investor inflows and a rise in precious metal prices pushed the Assets Under Management (AUM) for commodities up by 10.2 per cent, bringing the total to Rs 2.77 lakh crore.
The newsletter specified that this segment was bolstered by inflows amounting to Rs 3,867 crore, highlighting a strong appetite for gold and other precious metals as a hedge against market instability.
Equity and Debt Performance
Despite the decline in the Nifty 50, equity passive assets managed to climb to Rs 10.76 lakh crore. This growth was supported by substantial net inflows of Rs 9,630 crore, which effectively offset the negative impact of falling stock prices on the overall asset value.
On the other hand, debt passive assets remained relatively stagnant at Rs 1.89 lakh crore. While this segment saw outflows of Rs 2,555 crore, the overall value was maintained because valuation gains balanced out the redemption pressures.
Expansion of Passive Product Offerings
The appetite for these instruments is further evidenced by the rapid expansion of available products. In August alone, 16 new passive schemes were introduced to the market, consisting of:
- 12 ETFs (Exchange-Traded Funds)
- 4 Index Funds
The majority of these new launches—14 in total—were equity-oriented, while the debt and commodity segments each saw one new product launch. This continuous rollout of new schemes suggests that financial institutions are betting on the sustained interest of Indian investors in passive strategies, regardless of short-term market fluctuations.