The Motilal Oswal Passive Funds Survey 2024 highlights the growing prominence of passive funds in India’s investment landscape. Based on responses from over 3,300 investors and 110 distributors, the survey reveals a strong upward trend in passive fund allocations.
Key insights include:
- Increased allocations: 80% of investors increased their passive fund investments, compared to 53% last year.
- ETF adoption: 57% of investors now hold ETFs, up from 41%.
- Long-term commitment: 81% of investors plan to retain their passive investments for over three years.
- Evolving priorities: Better risk-adjusted returns replaced lower costs as the top reason for choosing passive funds.
Additionally, factor-based funds, particularly strategies like Quality, Momentum, and Value, are gaining traction, with 20% of investors including them in their portfolios. Among distributors, 51% recommend passive funds for diversification, while 39% highlight their superior risk-adjusted returns.
This report underscores how growing awareness, diversification benefits, simplicity, and cost-efficiency are driving interest in passive funds, shaping India’s financial future. It serves as a resource for investors, industry professionals, and policymakers to understand the evolving trends in passive investing.
Disclaimer: This document has been issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact. The graphs used above are to explain the concept and are for illustration purposes. The information / data herein alone is not sufficient and should not be used for the development or implementation of any investment strategy. It should not be construed as investment advice to any party. All opinions, figures, estimates and data included in this article are as on date. The report does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.
Source: MOAMC Internal research
Investments in securities market are subject to market risks, read all relevant documents carefully. The SIP amount, tenure of SIP, expected rate of return are assumed figures for the purpose of explaining the concept of advantages of SIP investments. The actual result may vary from depicted results depending on scheme selected. It should not be construed to be indicative of scheme performance in any manner. Past performance may or may not be sustained in future.
Index schemes follow a passive investment technique and shall only invest in Securities comprising one selected index irrespective of its market conditions. If the Securities market declines, the value of the investment held by the Scheme shall decrease.
