look news india
Ahmedabad: The total retail portfolio of index funds has seen an increase of about 12 times in the last three years. According to a study report of a fund house, the number of index mutual funds has increased from 44 in March 2020 to 207 in March 2024. Also, the total retail folio in index funds has increased from 4.95 lakh in March 2020 to 59.37 lakh in December 2023.
According to the report, the total assets under management (AUM) of index funds (both equity and debt) increased almost 25 times from March 2020 to March 2024 to Rs. 2,13,500 crore. Currently, the share of debt index funds in total AUM is 51.5 percent. From March 2021 to March 2024, debt index funds have increased from almost zero to Rs. AUM 1.1 lakh crore.
The AUM of these funds is dominated by the Nifty 50 index. Nifty 50 accounts for 70.7 per cent of the total AUM. According to the report, it is clearly dominated by large cap stocks. The Nifty Next 50 index accounts for 14.6 per cent of the total AUM and its total AUM is Rs. 10,000 crore.
In June 2024, the assets of the index fund category reached a record high of Rs. 2.43 crore. The assets have grown by nearly 900 per cent in the last three years. The report states that index funds have seen the highest AUM growth among all mutual fund categories in the last three years. According to the report, equity and debt index funds are 120 and 87 respectively as of March 31, 2024.
