Team SKM,
India’s passive mutual funds continued to expand in October, with total assets under management rising 5.2% month-on-month to ₹13.66 lakh crore, according to data from the Association of Mutual Funds in India (AMFI). The sharp increase was driven by gold and silver exchange-traded funds (ETFs), alongside steady flows into index funds.
The segment recorded net inflows of ₹16,668 crore, led by equity index funds, gold ETFs, and diversified ETFs. Commodities remained the standout performers. Silver ETFs have grown at a compound annual rate of 180%, and gold ETFs at 61%, reflecting a strong rise in demand for hedging assets amid market volatility.
During 2025, silver prices surged 65%, and gold gained 51%, compared to a modest 2% rise in benchmark equity indices. Total assets in metal ETFs are now close to ₹90,000 crore, with silver contributing about ₹12,000 crore.
Equity Still Anchors Passive Investing
Despite the commodity rally, equity-linked products remain the foundation of India’s passive universe, accounting for nearly three-fourths of total AUM.
Other ETFs, including equity, sectoral, thematic, and silver-linked products, held the largest share at ₹9.08 lakh crore, up 5% from September. Index funds followed with ₹3.20 lakh crore, supported by a 22% rise in monthly flows.
Gold ETFs drew ₹7,743 crore of inflows in October, slightly below the record ₹8,363 crore in September but still enough to push their total AUM beyond ₹1.02 lakh crore for the first time. Silver ETFs, classified under “Other ETFs,” received ₹3,412 crore in new investments, taking their combined corpus to ₹42,537 crore.
Recent price corrections in gold, from around ₹1.32 lakh to ₹1.21 lakh per 10 grams, indicate near-term sentiment adjustment rather than a shift in fundamentals. Central bank buying, led by the RBI’s 880-tonne gold reserve, continues to provide structural support.
Retail Participation Expands Rapidly
Retail investors are deepening their participation in passive products. The total number of passive folios rose 8% in October to 4.82 crore, up from 4.46 crore in September.
Gold ETFs and Other ETFs together added more than 20 lakh investor accounts, while index funds added around 90,000. Gold ETF folios alone increased 11%, crossing 95 lakh investors.
Passive funds now represent just over one-fifth of India’s total mutual fund investor base, which stands at 23.2 crore accounts. Meanwhile, active equity funds saw a 19% month-on-month decline in inflows.
Despite this, the overall participation in mutual funds remains strong, with monthly SIP inflows touching ₹29,500 crore, the highest on record. A portion of equity allocations is also moving into hybrid and multi-asset funds, which provide exposure to both active and passive strategies.
Performance Strengthens the Case
Performance trends have reinforced the shift toward passives.
Over the past year, gold ETFs have delivered about 59% returns, while silver ETFs have gained 66–68%, outperforming most active categories. Top-performing funds include HDFC Gold ETF (59.4%), SBI Gold ETF (59.2%), ICICI Prudential Silver ETF (67.2%), and HDFC Silver ETF (67.2%).
The sustained rise in AUM, folio count, and one-year returns shows that India’s passive investing wave is becoming broader and more structural, though the recent surge in commodity-linked ETFs may still reflect a short-term speculative element.