The survey performed with greater than 2,000 traders collaborating from throughout the nation, shares insights on the utilization and perspective of traders in direction of passive funds in India. The examine additionally throws gentle on traders’ desire for SIPs over lumpsum investing, an affinity for index funds, and reliance on social media over information retailers of their funding decision-making.

Talking on the examine, Navin Agarwal, MD & CEO, Motilal Oswal Asset Administration Firm Ltd. mentioned, “The demand for passive investing has grown exponentially over the previous few years, which displays in AUM development of 8.5x in final 5 years at a CAGR of 54%. Our dedication to innovation and schooling will proceed to help the way forward for passive funds in India.”

Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Administration Firm Ltd mentioned, “Passive funds are extensively in style within the U.S. and have over 50% market share. We’ve got began seeing related tendencies in India over the previous few years as properly. With a market share of round 17%, we imagine that there’s ample runway for passive funds forward. This survey is a primary of its sort in India and supplies insights into how traders take into consideration passive funds. It additionally helps shed some gentle on the thought course of behind funding choices of Indian traders.”

In line with the findings of the survey, 61% of traders have invested in not less than 1 passive fund, underscoring the fast-growing adoption of passive funds in India. Revealing the rationale traders select to put money into passive funds, the survey findings level out the truth that 57% of respondents favor these funds attributable to their low-cost nature as the most important motive, adopted by 56% of respondents who really feel that the simplicity of those funds is what pulls them to put money into them, and greater than 54% traders achieve this for the truth that they have an inclination to ship market returns.

Key Highlights of the survey

-61% of respondents say they’ve invested in not less than 1 passive fund

-The highest 3 causes for investing in passive funds turned out to be low price, simplicity, and market returns

-53% of respondents say they elevated their allocation to passive funds within the final 12 months

-3 in 4 respondents favor to take a position utilizing SIPs, underscoring the significance of disciplined investing for wealth creation over the long-term

-Round 60% of respondents mentioned that they depend on Social Media for info on markets and investments

-Greater than 80% of respondents say they plan to carry their investments for greater than 3 years

Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise traders to test with licensed consultants earlier than taking any funding choices.

Up to date: 09 Aug 2023, 10:27 AM IST