Aditya Birla Sun Life Asset Management Co. (ABSL) has declared passive investing a core strategy as it aims to scale its exchange‑traded fund (ETF) and index fund operations. The company said it will focus on building a larger passive franchise to support long‑term asset and profit growth.
During the Q1FY27 earnings call, Managing Director and CEO A. Balasubramanian spoke about the firm’s increased investments in talent and products. He said the passive segment is a key engine for growth and that ABSL is committed to becoming a leader through a comprehensive product suite, strong distribution, and brand strength.
To lead this effort, ABSL appointed Hemen Bhatia as Head of Passives. The appointment signals the company’s intent to deepen expertise in passive strategies.
ABSL reported that its passive quarterly average assets under management (AUM) grew 14% year‑on‑year in FY27. The ETF average AUM surged 47%, well ahead of the industry’s 29% growth.
The passive portfolio now covers equity, fixed‑income, and commodity products. Total passive folios reach about 17.4 lakh, indicating a broad product mix.
Balasubramanian noted that active funds will continue to dominate overall growth, but passive products are essential for giving investors wider asset‑allocation choices.
He added that ABSL has invested in people passionate about building passive offerings. The company views passive products as a way to scale while keeping costs low.
Although margins on passive products are lower, the business can still contribute meaningfully to absolute profits as assets expand. The same philosophy will guide ABSL’s GIFT City offerings, especially products that provide overseas investment opportunities.
The CEO highlighted the large domestic passive market, noting that India’s ETF industry is around Rs 11 lakh crore. He said the retail opportunity, excluding mandate‑based investments, is smaller but still offers room for expansion.
Gold and silver ETFs will remain key focus areas for ABSL. The firm is also building passive capabilities to serve institutional investors, high‑net‑worth individuals, and international investors through GIFT City.
Alongside its passive strategy, ABSL is strengthening its distribution network to reach more retail investors. Two large banks added its schemes to their recommended lists during the quarter.
The company also secured approvals from HDFC Bank, HSBC, Standard Chartered, ASK Wealth, and IndusInd Bank. ABSL had 1.11 crore investor folios and 40 lakh SIP accounts.
In June, the firm recorded Rs 1,083 crore of monthly SIP inflows and registered about 5.5 lakh new SIP registrations during the quarter. These figures underscore the growing demand for passive investment solutions.
Overall, ABSL’s focus on passive investing, talent, and distribution positions it well to capture a larger share of India’s expanding ETF market while maintaining a strong active fund presence.