India's Passive Investment Boom: AUM Set to Hit Rs 50 Lakh Crore by 2026

The NSE Indices press meet in Mumbai highlighted the surging trend in passive investing, with Assets Under Management anticipated to reach Rs 50 lakh crore by 2026. CEO Aniruddha Chatterjee emphasized the mainstreaming of passive investments, the launch of new indices, and the growing number of passive fund folios in India.

In a significant development for India's financial landscape, NSE Indices hosted a press meet in Mumbai to discuss the burgeoning trend of passive investing. The event underscored a remarkable growth trajectory, with Assets Under Management (AUM) in passive investments projected to rise from Rs 1.63 lakh crore in 2020 to an anticipated Rs 50 lakh crore by 2026.

Speaking at the event, Aniruddha Chatterjee, CEO of NSE Indices, elaborated on the strategic evolution of index investing in the country. He unveiled the Nifty India FPI 150 Index, emphasizing its critical role in making passive investment mainstream. Chatterjee highlighted the importance of creating transparent and accessible frameworks for investors, allowing them to channel and allocate their assets effectively.

Chatterjee further differentiated between active and passive investing approaches, clarifying that passive strategies allow investors to track public indices without personal stock selection. He cautioned investors to be aware of market risks, advocating for a long-term perspective in passive investing. Notably, the number of passive investment folios in India has surpassed the 50 million mark, signaling robust growth and adoption of ETFs and index funds.

(With inputs from agencies.)