Passive funds have gained market share from 1.4% of AUM in 2015 to over 17% today: Motilal Oswal Mutual Fund

economictimes.indiatimes.com:

Motilal Oswal Asset Management Company (MOAMC) revealed that passive funds have gained market share from 1.4% of AUM in 2015 to over 17% today. MOAMC offers the widest range of passive funds in India with more than Rs 17,000 Crs in AUM across 30 Index Funds, ETFs, and FoFs. The survey conducted with more than 2,000 investors participating from across the country, shares insights on the usage and attitude of investors towards passive funds in India. The study also throws light on investors’ preference for SIPs over lumpsum investing, an affinity for index funds, and reliance on social media over news outlets in their investment decision-making, the fund house said. Key Highlights:

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• 61% of respondents say they have invested in at least 1 passive fund • The top 3 reasons for investing in passive funds turned out to be low cost, simplicity, and market returns • 53% of respondents say they increased their allocation to passive funds in the last 12 months • 3 in 4 respondents prefer to invest using SIPs, underscoring the importance of disciplined investing for wealth creation over the long-term • Around 60% of respondents said that they rely on Social Media for information on markets and investments • More than 80% of respondents say they plan to hold their investments for more than 3 years Speaking on the study, Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company, said, “The demand for passive investing has grown exponentially over the past few years, which reflects in AUM growth of 8.5x in the last 5 years at a CAGR of 54%. Our commitment to innovation and education will continue to support the future of