The Indian mutual fund industry recorded net inflows of approximately Rs 25,000 crore in the last quarter | File Pic
New Delhi: 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.
The inflows were largely driven by equity-oriented schemes, even as debt funds saw outflows.
The report said, “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 report data highlighted that equity mutual funds attracted strong investor interest with total net inflows of Rs 1.17 lakh crore during the quarter.
Of this, active equity funds contributed around Rs 92,000 crore, while passive equity funds saw inflows of Rs 25,000 crore. It also noted that the Passive equities now account for 21.5 per cent of the total net flows within the equity category, reflecting a growing investor preference for low-cost options.
On the other hand, debt mutual funds saw a reversal in trend with a total net outflow of Rs 1.10 lakh crore. Within this, active debt funds witnessed net outflows of Rs 109 crore, and passive debt funds recorded outflows of around Rs 1,000 crore.
Investors showed a clear preference for broad-based funds in the equity space. These funds accounted for about 64 per cent of the market share in total equity inflows.
In the passive equity segment, the share of broad-based funds rose sharply from 66 per cent in the previous quarter to 84 per cent. A similar rise was seen in active equity, where broad-based funds’ share increased from 70 per cent to 72 per cent on a quarter-on-quarter basis.
In the active broad-based 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 closely with Rs 11,700 crore in net inflows.
In contrast, thematic funds in the active equity space continued to see a decline in interest, settling at around Rs 9,000 crore in net inflows. Within passive equity, broad-based funds attracted the highest inflows, while factor funds held a 15 per cent share and thematic funds just 2.7 per cent.
Among passive investments, investors continued to prefer Large Cap funds, which received around 90 per cent of the net inflows in this category. However, there was a noticeable decline in this share, as more investors started shifting towards Mid Cap and Small Cap segments.
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