MF investors hike passive play via ETFs, June inflows up 4x sequentially

Industry estimates suggest over Rs 700 crore of fresh flows in July

Investor interest for passively-managed products such as exchange-traded funds (ETFs) has seen a steady rise, with investors increasingly looking at alternatives to actively-managed equity funds.

According to industry estimates, ETFs are likely to draw over Rs 700 crore of net flows in July, while flows towards equity funds could be negative. In June, ETFs had garnered Rs 4,092 crore of net inflows, which was four times higher than the previous month.  “Lot of smart money from high networth investors (HNIs) and ultra-HNIs looking at low-cost products has come into ETFs over the last couple of years,” said Vishal Jain, head-ETF,