Summary:

According to a Motilal Oswal Asset Management Company poll, index funds are gaining popularity among Generation Z and Millennials, with 46-48% preferring them over Gen X and Boomers. These funds track stock market indexes such as the Nifty 50 or Sensex, which represent major corporations. Investments in these funds grow in line with the index, and younger investors prefer sectoral indices over commodities and smart beta funds.

Passive funds in India have seen impressive growth, with Assets Under Management (AUM) expected to reach US$ 130.39 billion (Rs. 11 trillion) by September 2024, marking a 1.5x yearover-year increase. Millennials and Generation Z have been key drivers of this trend. Passive funds, which require less monitoring than active ones, appeal to long-term investors. The poll found that 98% of investors are aware of passive funds, 74% favor index funds, and 82% have a long-term outlook.

Source: IBEF 

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