Passive investment has been gaining ground as most of the actively managed funds are unable to beat their benchmark indices. The passive funds asset has grown to ₹10.2 lakh crore accounting for 17 per cent of the total market share, while AUM of active funds were at ₹51 lakh crore as of June-end.

As per the Motilal Oswal Asset Management Company study ‘Where the money flows’, equities take away 60 per cent of total AUM, followed by 27 per cent by debt, 9 per cent by hybrid and remaining goes to other categories.

Prateek Agrawal, MD & CEO, Motilal Oswal Asset Management Company said as the industry grows leaps and bounds, the challenge for asset managers will be to innovate and adapt to the changing needs of investors and remain relevant in a competitive market.

Pratik Oswal, Chief of Business Passive Funds, Motilal Oswal AMC said the financial markets are constantly evolving, and staying informed about where the money is flowing is essential for making sound investment choices.

The latest study offers a deep dive into the current trends driving these movements, shedding light across categories attracting most interest from investors, he said.