Passive investing has seen tremendous growth globally, with the US now having above 50% of total assets in them.

In India too, the passive AUM (assets under management), which is the total value of assets managed by a fund or investment company, has witnessed substantial growth of 182% over the last 3 years to Rs 9.5 lakh crore. As the Indian MF industry prepares to approximately double its size to Rs 100 lakh crore by 2030, DSP expects passive Investments i.e. ETFs and index funds to be one of the big drivers for increased penetration, which could account for 25-30% of the total AUM of the mutual fund ind .

Globally, strategies like equal weight indices (indices where each stock is given equal weight, rather than being weighted by market capitalization), which have worked well internationally, are also gaining traction in India.

DSP Mutual Fund was the first to launch an equal weight index fund in 2017 and an ETF in 2021 India after researching and back testing this strategy. DSP’s Equal weight index fund has grown over ten times.