Debt mutual funds experienced a sharp reversal, registering net outflows of Rs 1.10 lakh crore. Active debt funds saw Rs 109 crore in net outflows, and passive debt funds registered Rs 1,000 crore in outflows.
The Indian mutual fund industry recorded net inflows of approximately Rs 25,000 crore in the last quarter, according to a report by Motilal Oswal Asset Management Company. Equity-oriented schemes drove these inflows, while debt mutual funds witnessed significant outflows. The report stated, “The MF Industry recorded net inflows of approximately Rs 25k Cr in the quarter. Equity drew Rs 117K cr in inflows, Debt witnessed reversal with Rs 110k Cr in outflows.” The data revealed that active equity funds contributed Rs 92,000 crore, and passive equity funds attracted Rs 25,000 crore, signaling increasing investor interest in equity assets.
Strong Momentum In Equity Mutual Funds
Equity mutual funds attracted net inflows of Rs 1.17 lakh crore during the quarter. Within this, active equity funds recorded Rs 92,000 crore in inflows, while passive equity funds saw Rs 25,000 crore. Passive equities accounted for 21.5 per cent of the total net flows within the equity category. This indicates a growing preference among investors for low-cost investment options.
Broad-based equity funds dominated investor choices. These accounted for about 64 per cent of the total equity inflows. In the passive equity segment, broad-based funds’ share surged from 66 per cent in the previous quarter to 84 per cent. Active broad-based funds also saw a rise, increasing their share from 70 per cent to 72 per cent quarter-on-quarter.
Flexi Cap, Small Cap Funds Lead In Active Equity Segment
In the active broad-based equity category, Flexi Cap and Small Cap funds led the inflows with Rs 16,500 crore and Rs 12,000 crore, respectively. Mid Cap funds followed with Rs 11,700 crore in net inflows. Thematic funds in the active equity space recorded net inflows of Rs 9,000 crore, reflecting a decline in investor interest.
Debt Funds See Heavy Outflows
Debt mutual funds experienced a sharp reversal, registering net outflows of Rs 1.10 lakh crore. Active debt funds saw Rs 109 crore in net outflows, and passive debt funds registered Rs 1,000 crore in outflows. This trend shows a withdrawal from fixed income assets during the quarter.
Large Cap Funds Dominate Passive Equity Inflows
In the passive equity space, Large Cap funds received nearly 90 per cent of the net inflows. However, their dominance declined slightly as more investors allocated funds to Mid Cap and Small Cap segments.
(With Inputs From ANI)