Index Funds - A detailed report by Zerodha Fund House

The total number of retail Index Fund folios has grown by around 12X in less than 4 years. Investors may be choosing Index Funds for their numerous benefits such as Broad Market Exposure, Diversification, and potential for long term growth. Please find the detailed breakdown below👇

Growth in the total number of Index fund retail folios by about 12x in less than 4 years:

The total number of retail folios in index funds has increased nearly 12-fold, growing from 4.96 lakh in March 2020 to 59.37 lakh by December 2023. This may be viewed as an indication of increased preference for passive investment strategies.

Increase in the AUM of Index Funds by more than 85x over the past 7 years:

There is a further increase in the total Assets Under Management (AUM) of index funds. From approximately ₹8,000 crore in March 2020, the AUM of these funds has increased 25 times to about ₹2,13,500 crore by March 2024.

Increase in the number of Index Funds by nearly 10x in the past 7 years:

As we can observe, the total number of index funds has also grown significantly, with an increase from 44 in March 2021 to 207 by March 2024, marking a 370 percent rise.

AUM of Index Funds across different Broad Based Indices:

The study reveals that the Index Funds based on the top three* broad based indices i.e Nifty 50, Nifty Next 50 and Nifty Midcap 150 contribute about 90% of total AUM among broad based indices.

AUM of Index Funds hit a record high in June 2024

As of June 2024, index funds reached a record high AUM of ₹2.43 lakh crore, reflecting close to 900 percent increase over the past three years. Index funds have surpassed other mutual fund categories in AUM growth percentage.

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Published on Aug 09, 2024