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Passive funds have been gaining popularity among investors. AMFI monthly data shows that passive funds have overtaken active funds in terms of net inflows.
The data shows that passive funds have received monthly inflows of Rs.10,260 crore during October 2022 which was higher than that of active funds.
Interestingly, over 50% of the total net inflows in passives was from index funds with inflows of over Rs.5000 crore. Equity and debt ETFs which received net inflows of Rs.4800 crore last month followed index funds.
The record inflows in passive funds was due to a host of NFOs. The industry launched 21 index funds and 2 ETFs in October 2022, which received close to Rs.1800 crore.
So far, the MF industry has received net inflows of close to 95,000 crore through passive funds between April and October 2022.
Equity funds
The MF industry received inflows of over Rs.9400 crore in equity funds last month. Categories like sectoral funds, small cap funds and large & mid cap funds received maximum inflows of Rs.2700 crore, Rs.1600 crore and Rs.1400 crore respectively.
The inflows in sectoral funds came largely due to NFO launches. Two thematic funds – ICICI Prudential Transportation and Logistics Fund and IDFC Transportation and Logistics Fund grossed over Rs.2600 crore during NFO.
Debt funds
Debt funds saw marginal outflows of Rs.2800 crore largely on account of withdrawal from most of the categories including overnight funds.
However, net inflows in liquid funds (Rs.19,000 crore) offset to an extent the impact of outflows in debt funds.
Hybrid funds
Hybrid funds witnessed outflows of Rs.2800 crore largely on account of of redemption from arbitrage funds (Rs.450 crore), balanced advantage funds (Rs.2500 crore) and Equity Savings Funds (Rs.200 crore).
Other categories across hybrid funds like aggressive hybrid funds and multi asset funds saw net inflows net inflows of Rs.245 crore and Rs.87 crore, respectively.
Solution oriented funds also witnessed net inflows of Rs.170 crore.
Other key highlights
- Total number of folios reached 13.91 crore including over 11 crore retail folios
- Overall, the average AUM of the MF industry remains unchanged at Rs.40 lakh crore
- The MF industry received close to Rs.5500 crore from NFOs in October 2022
