Notably, debt index funds had seen growth from negligible to no AUM until March 2021 however reached the milestone AUM of Rs 1.1 lakh crore in March 2024. Debt index funds constituted 51.5% of the overall AUM and 48.5% was contributed by equity index funds.
“The increasing contribution of folios to the MF industry is incrementally being contributed by index funds. Nearly 11% of new folios last financial year came from index funds. It is only the beginning of a growing trend and Zerodha Fund House is proud to play its part in it. Retail investors increasingly prefer to have simple & transparent exposures with passive products like index funds in their portfolios and this trend is heartening to see,” mentioned Vishal Jain, CEO, Zerodha Mutual Fund.
Many mutual fund homes have launched fairness and debt index funds in the final 4 years to cater to the rising urge for food and confidence of investors in index funds, The complete variety of index funds has elevated from 44 in March 2021 to 207 in March 2024. This accounts for an absolute growth of 370%. As of March 31, 2024, there are 120 and 87 fairness and debt index funds respectively.
The index funds class property have been at a document excessive of Rs 2.43 lakh crore as of June 2024, and has seen a surge of almost 900% in property in the previous three years. Across all the opposite mutual fund classes, index funds witnessed the very best AUM growth (in %) over the previous 3 years.
The fund home at present affords two index funds – Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund. These funds are open-ended schemes monitoring Nifty LargeMidcap 250 Index and Nifty LargeMidcap 250 Index respectively.
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund is an open-ended passive fairness linked financial savings scheme with a statutory lock-in interval of three years and tax profit monitoring Nifty LargeMidcap 250 Index.
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