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A study ‘Where the money flows’ by Motilal Oswal Mutual Fund reveals that active equity funds led all scheme categories with net inflows of Rs. 74,000 crore in July-September 2023.
On the other hand, passive equity funds received net inflows of Rs. 9,000 crore during the second quarter of the current financial year, shows the report.
Overall, the MF industry received net inflows of over Rs.51,000 crore in the July-September 2023.
In the press release, Pratik Oswal, Head of Passive Funds, Motilal Oswal MF 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. Our aim with this report named “how the money flows” is to present a snapshot of the changing dynamics and emerging trends within the MF industry in the past quarter.”
Here are other key highlights of the report:
- Across fund categories, arbitrage funds recorded the highest net inflows of Rs.29,000 crore, as it is more tax-efficient compared to liquid funds
- Over Rs 42,000 crore of net inflows has come in pure equity funds with small cap receiving the highest inflows
- Passive large cap funds received net inflows of Rs.7,500 crore. On the other hand, active large cap funds saw net outflows to the tune of Rs.1800 crore
- Multi asset funds recorded net inflows of Rs. 9,000 crore largely due to NFOs
- Debt funds witnessed substantial net outflows in the second quarter
- International funds saw outflows for the second quarter in a row
- Fund houses have launched 29 NFOs, which collected over Rs.16,000 crore
