SBI Mutual Fund topped the list of fund houses that received the highest inflow last year and pipped the competing mutual funds with a wide margin. The country's largest fund house, which had a few bumper new fund offers, registered a net inflow of ₹81,138 crore last year, while the second placed Kotak MF attracted investment of ₹32,248 crore, according to Morningstar data.
Axis MF and ICICI Prudential MF followed with net inflow of ₹30,628 crore and ₹30,295 crore, respectively last year. Edelweiss bagged the fifth place with inflow of ₹29,500 crore.
The humungous net flow in SBI MF was largely on account of investment of ₹23,900 crore and ₹22,703 crore in liquid and Balanced Advantage. SBI also managed to get the highest inflow of ₹27,193 crore in exchange traded funds last year.
On the other hand, asset management companies that had the highest outflow of funds last year Franklin Templeton MF (₹9,671 crore) and IDFC MF (₹9,181 crore).
SBI MF again received the highest net inflow of ₹25,892 crore in the December quarter of this fiscal followed by Edelweiss MF and Axis MF with ₹11,303 crore and ₹6,825 crore while ICICI Prudential MF received Rs 4,937 crore.
Melvyn Santarita, Research Analyst, Morningstar Investment Adviser India said a significant part of the net inflow in SBI MF was in its liquid fund and a couple of equity ETFs, which helped to garner the highest quantum of flows in the quarter.
Among ETFs, SBI Mutual Fund received the highest flow of ₹7,673 crore in the December quarter followed by Edelweiss, Nippon India and ICICI Prudential, which received ₹7,441 crore, ₹3,239 crore and ₹3,091 crore, respectively.
The large net inflow in Edelweiss MF was due to Bharat Bond ETF April 2032 (₹6,345 crore) launched in December.
NEW FUND OFFERS
The series of new fund offers which nearly doubled to 140 mopped up ₹99,704 crore last year against 81 offers raising ₹53,704 in 2020.
Santarita said the mobilisation in the second quarter was largely aided by the humongous flow in SBI Balanced Advantage Fund (₹14,551 crore) and three Flexi cap funds which cumulatively garnered ₹13,287 crore.
Gopal Kavalireddi, Head of Research, FYERS said inflows in new offers are a function of market environment and investment trends.
Nifty hit an all time high of 18,604 on October 18, buoyed by retail investor participation and domestic institutions buying, but over the last few months, the stock markets have turned volatile.
Cost inflation pressures are evident in the performance of most companies in December quarter results. Operating profit margins are dented due to high input cost and sluggish demand growth, with economic indicators lagging, he added.