Passive Funds grow Folios by 31.2%, AUM by 25.1% in July 2026
At ₹12,517 crore, passive inflows in July 2026 were -25.2% lower than June. On a yoy basis, the growth in passive folios and passive AUM is still impressive, with passive AUM growth picking up in July.
PASSIVE FLOWS RELATIVELY SUBDUED IN JULY 2026
At ₹12,517 crore, passive inflows in July 2026 were -25.2% lower than June. On a yoy basis, the growth in passive folios and passive AUM is still impressive, with passive AUM growth picking up in July.
Out of the 13 passive fund categories, 4 categories saw net outflows and 8 categories saw net inflows. As of July 2026, AUM leaders in the passive space were; equity index ETFs, equity index funds, and gold ETFs in that order.
July 2026 saw subdued flows into gold ETFs and silver ETFs, despite the precious metals showing price recovery in global markets. Debt Index ETFs saw healthy inflows after a long gap.
| Passive Fund Schemes | Jul-26 Folios | YOY (%) | Jul-26 AUM | YOY (%) | Net flows |
|---|---|---|---|---|---|
| Equity Index Funds (Domestic) | 1,50,04,563 | 14.01% | 2,38,791.72 | 27.33% | 2,469.33 |
| Equity Index Funds (International) | 2,86,324 | 17.20% | 7,912.77 | 31.35% | 1.87 |
| Debt Index Funds (TMIF) | 1,77,088 | -2.69% | 86,728.59 | -15.30% | -958.77 |
| Debt Index Funds (Ex-TMIF) | 35,116 | 211.95% | 6,132.80 | -0.85% | 26.21 |
| Other Index Funds | 1,19,386 | 18.46% | 3,820.06 | 3.39% | -2.02 |
| Gold ETF | 1,25,33,029 | 59.26% | 1,73,301.40 | 156.23% | 1,558.75 |
| Equity oriented ETFs (Domestic) | 1,89,23,119 | 15.79% | 8,04,152.56 | 13.48% | 6,824.32 |
| Equity oriented ETFs (International) | 12,48,441 | 31.76% | 20,031.65 | 28.55% | 0.00 |
| Debt Oriented ETFs | 16,85,996 | -32.66% | 96,168.52 | -1.11% | 1,388.51 |
| Other Domestic ETFs | 265 | N.A. | 14.37 | N.A. | 14.34 |
| Silver ETF | 53,76,244 | 429.07% | 77,676.33 | 238.26% | 1,284.88 |
| FOFs on overseas Active Funds | 14,96,884 | 86.45% | 36,260.84 | 70.28% | -42.64 |
| FOFs on overseas Passive Funds | 5,20,761 | -11.47% | 10,091.01 | 13.74% | -47.74 |
| Total of Passive Funds | 5,74,07,216 | 31.16% | 15,61,082.63 | 25.08% | 12,517.04 |
Data Source: AMFI (Net AUM ₹ in Crore), Folios in Numbers, Net flows pertain to July 2026
PASSIVE FLOW STORY FOR JULY 2026
- Overall passive fund flows at ₹12,517 crore in July 2026 with major contribution coming from index ETFs, index funds, and precious metals ETFs.
- For July 2026, gold ETFs saw net inflows of ₹1,559 crore while silver ETFs saw net inflows of ₹1,285 crore; both sharply lower than the June inflows.
- Equity Index ETFs and Equity Index Funds continue to attract investor attention, as they continue to be a preferred option considering their relatively lower costs.
- With most global funds putting restrictions on global fund investments due to the rupee weakness, both the global FOFs saw marginal net outflows in July 2026.
- Flows continue to be cautious about debt funds as expectations of a rate hike are gaining currency, amid rising inflation and the ongoing turmoil in the Middle East.
TAKEAWAYS FROM THE FOLIO AND AUM STORY IN JULY 2026
While AUM captures overall shift yoy, folios capture retail intensity of demand. AUM growth tends to be cyclical; while folios are more structural and suggestive.
- Let us look at folio growth yoy for the year to July 2026. Silver ETFs at 429%, non-TMIF debt funds at 212%, FOFs on overseas active funds at 86.5%, and Gold ETFs at 59.3% were the big drivers of folio growth.
- What about the passive fund categories seeing contraction in folios in the month of July 2026? Debt oriented ETFs saw folio contraction of (32.7%), FOFs on Overseas Passive Funds saw folio contraction at (11.5%), and Debt Index TMIFs (2.7%).
- While growth in gold and silver folios over the last 1 year was driven by the surge in prices and in retail fancy; the momentum has been fading since April 2026. With rate hikes on the anvil in the US, opportunity cost of holding gold and silver is higher.
- What about AUM growth story yoy? Again, it was silver ETFs at 238% and gold ETFs at 156% that ruled the roost. Also, FOFs on overseas active funds saw folio accretion of 70.3% yoy. Overall passive AUM growth is sharply higher than June 2026.
- On an overall basis, the momentum of growth in folios has tapered compared to June, but the growth in AUM is higher. That could mean; the interest levels of retail investors in gold and silver may be dropping, while HNIs may be entering.
There are 3 trends visible in the passive data for July 2026. Firstly, there is caution on debt ETFs due to high inflation. Secondly, retail investors are moving out of gold, while HNIs are moving in. Thirdly, passive AUM is steady at around 15% of overall MF AUM.
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