Use passive funds in portfolio for broad-based, low-cost, stable allocation

Avoid need to chop and change funds due to underperformance; supplement with active funds in satellite portion

For the first time in September 2025, net new folio additions in passive mutual fund schemes surpassed those in active equity schemes. Passive schemes — spanning index funds, exchange-traded funds (ETFs) and fund-of-funds (FoFs) — added 2.1 million accounts, compared with 1.4 million new accounts in active equity funds. 

Key drivers: Precious metal ETFs 

Precious-metal ETFs were the main catalyst. “Passive schemes added a record number of folios in September, driven by gold and silver ETFs,” says Siddharth Srivastava, head – ETF product & fund manager, Mirae Asset Investment Managers (India).

 

Gold and silver funds, which have returned 56-69 per