Expect passive funds to be 37% of mutual fund assets by 2025: Finity Passive Investing Report

Expect passive funds to be 37% of mutual fund assets by 2025: Finity Passive Investing Report



The share of assets managed by passive funds in the US mutual fund industry is currently at 35 percent.





October 21, 2021 / 03:43 PM IST





Direct mutual fund platform, Finity on October 21 said it expects investor assets managed by passive funds to account for 37 percent of total mutual fund (MF) industry assets by 2025, from the 10 percent share that it has right now.

Abhilash Joseph, business head of Finity said it is a conservative estimate. “We are expecting the growth of passive assets and mutual fund industry assets to continue with the same momentum that it has seen in the last five years. We expect the passive fund assets to continue to compound at 69 percent annualised growth over next five years, and the overall mutual fund industry assets to grow at 21 percent,” he said.

The share of assets managed by passive funds in the US mutual fund industry is 35 percent at present.

Joseph pointed out that not just new-age fund houses like Navi Mutual Fund and Zerodha, but also traditional fund houses like HDFC MF, are now focusing on passive funds.

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