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ABSL's Total Market Fund: Can One Passive Fund Really Capture India's Growth Story?
M
Moneycontrol•29-09-2026, 12:47
ABSL's Total Market Fund: Can One Passive Fund Really Capture India's Growth Story?
- •India's passive investing market has grown 9.5x since March 2020, yet passive funds account for only 17.7% of India's mutual fund AUM.
- •Aditya Birla Sun Life Mutual Fund is launching broad-market products to give investors exposure to India's entire equity market.
- •The new ABSL BSE Total Market Index Fund and ETF track the BSE Total Market TRI, covering 93% of India's total market capitalisation.
- •The fund aims to provide exposure across 22 sectors and large, mid, small, and microcap companies.
- •The core question is whether owning the entire market is becoming a better investment strategy than actively trying to beat it.
Key Questions Answered
The new ABSL BSE Total Market Index Fund and ETF track the BSE Total Market TRI, covering approximately 93% of India's total market capitalization across 22 sectors and large, mid, small, and microcap companies.
India's passive investing market has grown 9.5 times since March 2020, though passive funds still account for 17.7% of India's mutual fund AUM compared to 53.9% in the US.
Aditya Birla Sun Life Mutual Fund is betting that future growth will come from broad-market products that provide investors exposure to the entire Indian equity market, eliminating the need to choose between separate large-, mid-, and small-cap funds.
