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The top three mutual funds accounted for almost half of the quarterly net inflow of ₹51,000 crore in the September quarter.
Of the overall inflow, active funds accounted for ₹39,000 crore and that of passive funds was ₹12,000 crore. Twenty-nine new funds launched mopped up ₹16,000 crore in assets under management (AUM), according to the Motilal Oswal Asset Management Company study ‘Where the money flows’.
More active funds
The broad-based active funds have seen the highest net inflows at ₹42,000 crore, while Equity Linked Savings Scheme (ELSS) and focused funds registered combined net outflows of ₹2,000 crore.
The active equity funds have registered a net inflow of ₹ 74,100 crore while multi-asset and hybrid assets received inflow of ₹ 9,000 crore and ₹ 8,300 crore. The debt funds and international funds recorded a net outflow of ₹50,800 crore and ₹ 1,300 crore respectively.
Among passive funds, large-cap funds logged inflow of ₹9,100 crore while that of commodity funds were at ₹2,100 crore.
Given the bullish trend in equity market, active equity funds registered the highest net inflow of about ₹74,000 crore in
the September quarter, followed by ₹9,000 crore in passive equity funds.
Tax efficiency
The study shows Arbitrage funds gaining popularity presumably as investors turned to Aarbitrage funds as a more tax-efficient substitute to Liquid funds.
With over 80 per cent of market share, arbitrage and broad-based categories took away the lion’s share of net inflows into Equity funds.
Pratik Oswal, Head of Passive Funds, Motilal Oswal AMC said currently there is no comparable data of net flows available to make objective and easy comparison between active and passive funds across different categories.
The report will be useful for investors and investment advisors to make informed decisions, he said.
The broad based category in both active and passive equities attracted significant net inflows, of which EPFO accounted for most of the flows in passive. Among active equity funds, the
Focused and ELSS categories logged the highest net outflow of about ₹ 2,000 crore. In passive equities, thematic funds accounted for the entire net outflows of ₹1,900 crore.
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