Passive Funds grow Folios by 35.1%, AUM by 27.5% in April 2026
At ₹20,082 crore, passive flows in April 2026 were robust, although sharply lower than March. On a yoy basis, the growth in passive folios and passive AUM continues to be impressive.
WHY THE MONTHLY CONTRACTION IN PASSIVE FOLIOS?
At ₹20,082 crore, passive flows in April 2026 were robust, although sharply lower than March. On a yoy basis, the growth in passive folios and passive AUM continues to be impressive. The contraction in folios in April was more on account of index-related concerns among retail investors at higher levels. Among the 12 categories of passive funds, debt-oriented funds saw contraction in folios on a yoy basis. As of April end, the AUM leaders in the passive space were; equity index ETFs, equity index funds, and gold ETFs in that order. Flows into gold ETFs have sobered after prices peaked out.
| Passive Fund Schemes | Apr-26 Folios | YOY (%) | Apr-26 AUM | YOY (%) | Net flows # |
|---|---|---|---|---|---|
| Equity Index Funds (Domestic) | 1,46,28,856 | 16.01% | 2,23,091.55 | 28.93% | 10,218.31 |
| Equity Index Funds (International) | 2,94,083 | 22.13% | 7,619.14 | 54.83% | 3.42 |
| Debt Index Funds (TMIF) | 1,68,415 | -8.20% | 89,059.07 | -14.62% | -5,198.68 |
| Debt Index Funds (Ex-TMIF) | 34,910 | 283.37% | 7,415.47 | 17.73% | -432.44 |
| Other Index Funds | 1,16,058 | 17.82% | 3,871.94 | 6.38% | 35.22 |
| Gold ETF | 1,24,75,144 | 74.60% | 1,78,110.32 | 189.98% | 3,040.31 |
| Equity oriented ETFs (Domestic) | 1,87,71,617 | 16.16% | 7,66,182.13 | 11.50% | 9,667.54 |
| Equity oriented ETFs (International) | 11,89,213 | 29.45% | 19,275.37 | 51.77% | 0.00 |
| Debt Oriented ETFs | 16,61,969 | -30.83% | 97,527.29 | -0.24% | 1,214.02 |
| Silver ETF | 54,57,975 | 630.04% | 81,944.20 | 429.47% | -126.72 |
| FOFs on overseas Active Funds | 12,62,082 | 62.97% | 35,541.12 | 105.03% | 1,691.74 |
| FOFs on overseas Passive Funds | 5,30,067 | -12.78% | 9,904.03 | 32.02% | -30.76 |
| Total of Passive Funds | 5,65,90,389 | 35.07% | 15,19,541.62 | 27.52% | 20,081.99 |
Data Source: AMFI (Figures are ₹ in Crore) # - flows pertain to Apr 2026
PASSIVE FLOW STORY IN APRIL 2026
- Overall passive fund flows at ₹20,082 crore in April 2026 was nearly 33% lower than March, largely on account of outflows from debt index funds in the month.
- In April 2026, gold ETF flows stayed subdued at ₹3,040 crore, and is sharply lower than the highs touched in the month of January 2026; when gold prices peaked.
- For the third month in a row, Silver ETF flows were negative in April 2026, although the outflows were quite small. Clearly, the silver euphoria is missing now.
- Net inflows in April 2026 were dominated by Equity Index Funds at ₹10,218 crore, followed by Equity Index ETFs at ₹9,668 crore.
- Debt oriented ETFs again saw net selling in April 2026 to the tune of ₹(5,199) crore as markets are factoring in rate hikes by RBI to counter higher inflation.
WHAT WE READ FROM THE FOLIO AND AUM STORY IN APRIL 2026
While AUM captures overall impact, folios capture retail intensity of demand. AUM growth is caught up in bullish and bearish sentiments; while folios are more neutral.
- Let us look at folio growth yoy for the year to April 2026. Silver ETFs at 630%, non-TMIF debt funds at 283%, and Gold ETFs at 75% were the big drivers of folios growth. TMIF Debt funds and FOFs on overseas passive funds saw folio contraction.
- In the case of silver and gold ETFs, the surge in folios on a yoy basis was more due to the lag effect of previous months. The AUM of gold and silver ETFs combined stands at over ₹2.60 trillion, a near 4-fold growth in the last one year.
- What about the AUM growth story on yoy basis. Again, it was silver ETFs at 429% and gold ETFs at 190% that ruled the roost. Despite the correction since late January, the rally up to January 2026 had been sharp enough to hold AUMs higher.
- Apart from gold and silver ETFs, domestic equity index ETFs and equity index funds saw subdued AUM growth due to value depletion. However, AUM of global ETFs and index funds has surged sharply due to global markets outperforming India.
There are 2 interesting trends emerging in passive funds in the last 1 year. While domestic index funds and index ETFs are still seeing interest, investors are also looking at global ETFs for diversification. However, this segment has restrictions. Secondly, gold and silver have now emerged as well-accepted diversifiers of risk. That is much better than just buying gold for geopolitical risk. Gold is now a true portfolio option!
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