Motilal Oswal Mutual Fund's latest Passive Survey reveals a significant shift in Indian retail investors' approach to mutual funds, with passive investments gaining substantial traction.

Key Findings

The survey, covering over 3,000 investors and 120+ distributors, highlights several notable trends:

Passive Fund Growth

The survey underscores the remarkable growth in passive fund assets under management (AUM):

• Current AUM: ₹12.20 lakh crore
• 6.40x increase over six years
• 36.00% CAGR from ₹1.91 lakh crore in 2019

Investor Preferences

The survey sheds light on why investors are gravitating towards passive funds:

1. Low costs (54.00%)
2. Diversification (46.00%)
3. Simplicity and transparency (46.00%)
4. Performance (29.00%)

Investment Patterns

Among passive fund investors:

• 57.00% own one to three funds
• 49.00% invest in both index funds and ETFs

Broad-based equity dominates allocations:

• 79.00% of index fund investors choose this category
• 62.00% of ETF investors opt for broad-based equity

Distributor Adoption

The survey indicates strong adoption among distributors:

• 93.00% understand passive funds
• 70.00% include them in client portfolios

Investment Goals

Top investment goals for passive fund investors:

1. Financial independence (61.00%)
2. Retirement planning (49.00%)

Generational Trends

Millennials are leading the charge in passive fund adoption, according to 54.00% of the distributors surveyed.

Conclusion

The Motilal Oswal Passive Survey paints a picture of rapidly growing interest in passive investment strategies among Indian retail investors. With significant AUM growth, increasing adoption rates, and a shift towards cost-effective, diversified investment options, passive funds are becoming a cornerstone of many investors' portfolios. As the market evolves, it will be interesting to see how these trends shape the future of mutual fund investments in India.

In a significant market move, Motilal Oswal Mutual Fund has made a substantial investment in Bharat Forge, while Aether Industries saw notable transactions involving international investors.

Motilal Oswal's Strategic Acquisition

Motilal Oswal Mutual Fund has strengthened its position in the manufacturing sector by acquiring a significant stake in Bharat Forge, a leading Indian multinational company. The fund purchased 32 lakh equity shares, representing a 0.65% stake in Bharat Forge, through open market transactions. The deal, valued at Rs 377.73 crore, was executed at a price of Rs 1,217.32 per share.

This strategic move by Motilal Oswal Mutual Fund underscores the attractiveness of Bharat Forge in the current market scenario. Following the transaction, Bharat Forge's shares closed at Rs 1,192.20, marking a 0.94% increase.

Aether Industries Witnesses Key Transactions

In a separate development, Aether Industries, a specialty chemical company, saw significant trading activity involving international investors:

• Singapore-based Amansa Capital acquired 12.82 lakh shares, equivalent to a 0.97% stake in Aether Industries. The transaction was valued at Rs 94.27 crore, with shares purchased at Rs 735.00 each.

• Concurrently, Goldman Sachs India Equity Portfolio divested 11.51 lakh shares, representing a 0.87% stake in Aether Industries. The sale was executed at Rs 735.01 per share.

These transactions highlight the ongoing interest of global investors in India's specialty chemicals sector. Aether Industries' shares responded positively to these developments, closing 1.42% higher at Rs 745.10.

Market Implications

These transactions reflect the dynamic nature of India's equity markets and the continued interest of both domestic and international investors in key sectors such as manufacturing and specialty chemicals. The investments by Motilal Oswal Mutual Fund and Amansa Capital may be seen as votes of confidence in the long-term prospects of Bharat Forge and Aether Industries, respectively.

Investors and market analysts will likely keep a close watch on these companies in the coming days to gauge the impact of these transactions on their performance and market perception.