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Index funds saw fourfold jump in flows in March amid market volatility

Last month, Index funds received inflows to the tune of Rs 2,076 crore, as against Rs 511 crore the previous month

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Industry participants say investors should be cautious with passively-managed funds in the current market environment

Jash Kriplani Mumbai
Index funds — which track performances of widely traded indices, such as the Nifty and the Sensex — saw a fourfold jump in inflows in March.

Last month, such funds received inflows to the tune of Rs 2,076 crore, as against Rs 511 crore the previous month.

“In a dipping market, where it is difficult to pick the right equity fund, index funds are suitable for investors with a long-term view and those wanting to make returns at par with the markets,” said Vidya Bala, co-founder, primeinvestor.in   “Also, it is easier to average with index funds, as investors can track