New Delhi, Oct. 15 -- Investor interest in passively managed mutual funds has grown by leaps and bounds. As of 30 September 2025, passively managed mutual funds accounted for Rs.12 trillion worth of industry assets, representing 16% of the overall assets managed by the mutual fund industry.

When it comes to passive funds, you have two options - index funds and exchange traded funds (ETFs). But which one should you choose?

An index fund is more like a regular mutual fund scheme. Every transaction happens at the end of the day, and takes into account that day's net asset value (NAV). Whether you invested at 10 am or 3 pm, you receive the same day's closing NAV.

With index funds, investors can also opt for systematic investment plans (SIP...