India’s Passive Investing Surges Sevenfold to INR13.7 Lakh Crore, Set to Become Long-Term Portfolio Backbone in 2026
By Hemen Bhatia, Executive Director and Chief Executive Officer, Angel One Asset Management Company.
“Looking ahead to 2026, passive investing is no longer a side bet, it is fast becoming the backbone of long-term portfolios. Assets under management have climbed from ₹1.9 lakh crore in 2019 to ₹13.7 lakh crore in 2025, marking a sevenfold rise, while folios have expanded nearly twentyfold to 4.7 crore. This sharp acceleration reflects how investors across geographies and profiles are embracing low-cost, transparent, and rules-based strategies as default choices. The momentum is expected to sustain in 2026, supported by deeper retail participation and growing institutional interest. Global trends underscore this shift: in the U.S., passive funds now account for more than half of mutual fund assets, with AUM rising from $13 trillion in 2019 to over $20 trillion by 2025, according to ICI (including ETFs and Index funds). With India’s passive share around 17%, the journey into 2026 and beyond suggests a long and compelling growth runway ahead.” said Hemen Bhatia, ED and CEO, Angel One AMC