The passive fund market saw a notable increase in October, with AUM rising 5.2% on-month to reach Rs 13.67 lakh crore. This growth was driven by a surge in market prices and a significant influx of fresh inflows into the category, which totaled Rs 16,668 crore. This month marked the 60th consecutive month of positive inflows into the market, according to a monthly note by Association of Mutual Funds in India (AMFI).

Gold exchange-traded funds (ETFs) were the primary beneficiaries of the surge, attracting a substantial Rs 7,743 crore, which accounted for 46% of the category’s flow. The rising price of gold, coupled with heightened demand for safe-haven assets, drove this influx. Additionally, expectations of US rate cuts and the ongoing accumulation of gold by central banks have led to increased inflows into the category, as investors seek to hedge against market volatility.

Silver ETFs garnered significant attention, attracting inflows of Rs 3,412 crore, which accounted for 20% of the total passive category flows. Furthermore, Gold and Silver ETFs collectively dominated the passive fund landscape, comprising over 66% of total inflows. This trend underscores the increasing appeal of precious metals as a portfolio diversification strategy among investors, particularly in the face of global market uncertainty and volatility, the note said.

“Between September and October 2025, passive AUM increased from Rs 12.65 lakh crore to Rs 13.30 lakh crore, reflecting a healthy month-on-month growth. This momentum shows an inclination in investor preference towards transparent and cost-efficient investment options. As more investors adopt passive strategies for long-term wealth creation, this trend will continue to play an important role in expanding overall market participation, said Hemen Bhatia, Executive Director and CEO, Angel One Asset Management Company.