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Passive funds’ asset under management (AUM) has grown to Rs 10.2 trillion while that of active funds stands at Rs 50.9 trillion, as of June 2024, according to a study named ‘Where the money flows’ by Motilal Oswal Asset Management Company. Passive funds contribute 17 per cent of the industry’s total AUM .
Factors for growth
While the Employees’ Provident Fund Organisation (EPFO) accounts for a significant portion of the growth in passive AUM, contributions by individual investors have also seen a notable increase, according to experts.
Both demand and supply factors have led to the preference