In falling markets, investors seek safety of passive funds

Trend Is Changing

- ANANYA GROVER

INVESTORS HAVE BEEN seeking the safety of passive funds on days when indices decline. According to exchange data, compiled by Mirae Asset Mutual Fund, 66% of days when the Nifty fell over 0.5% in the past year, volumes of exchange traded funds significantly exceeded the daily average.

For example, on April 7, when the Nifty 50 fell more than 3% tracking a fall in global markets on Trump's tariff announcement, the total traded value in this category was 3.4 times that of the average daily value of ₹1,914 crore. Similarly, on the general election counting day last year in June, when the Nifty had recorded its worst day since 2020, the value was 2.6 times.