Inflows into passive funds, which slumped after the change in debt fund taxation in April 2023, have rebounded this calendar year (CY2024). The surge in inflows came on the back of an increase in new index fund and exchange traded fund (ETF) launches and strong performance in some of the categories.

The aggregate inflows into passive funds topped Rs 12,000 crore in the previous two months (March and April 2024), with the total CY2024 net inflows at Rs 37,200 crore. The average monthly inflows in the previous six months were just Rs 3,263 crore.