AUM in passive investment in India surges to Rs 50 lakh crore in 2026: NSE Indices CEO

The shift towards passive investing reflects increasing investor sophistication and preference for lower-cost, diversified investment vehicles. This trend provides a stable revenue stream for AMCs.

Focus on AMCs with a strong market share in ETFs and index funds, as their AUM growth will directly translate to higher fee income.

For Indian markets, this story mainly matters for HDFCAMC, NIPPONF, UTIAMC and the metals pocket. The current signal is bullish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: As a leading AMC, HDFC AMC stands to benefit from the overall growth in passive investment AUM. As a leading AMC, Nippon Life India Asset Management stands to benefit from the overall growth in passive investment AUM. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Total AUM in passive investments surged from Rs 1.63 lakh crore in 2020 to approximately Rs 50 lakh crore in 2026.
• •NSE Indices organized a press meet to elaborate on the outlook for passive investing in India.
• •Risk flag: Increased competition in the passive fund space leading to fee compression
• •Risk flag: Market downturns impacting overall AUM values