Charts: Mutual funds that saw the largest inflows, outflows in June quarter

The first quarter of fiscal-year 2023-24 saw 25 new fund offerings (NFO). Cumulatively they were able to garner INR 5,539 crores during their NFO period.

Assets under management of open-end rose 25 per cent annually to Rs 44,13,034 crores in June 2023, shows data analysed by Morningstar.

 An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well. These shares are priced daily based on their current net asset value (NAV). Some mutual funds, hedge funds, and exchange-traded funds (ETFs) are types of open-end funds.

Open-end mutual funds saw net inflows to the tune of Rs 1,84,789 crores in the first quarter of the new fiscal year after witnessing net outflows in the quarter ended March 2023. Weightage wise, equity funds comprise around 39% of the total industry assets under management, followed by fixed income funds with 31%. The allocation/hybrid, solution, and other categories have approximately 12%, 1%, and 18% weightage respectively.

 

The first-quarter fiscal 2023-24 saw a net inflow of Rs 18,358 crores in open-end equity funds. Their total assets under management of open-end equity funds as of June 2023 stood at Rs 17,43,373 crore,  up by 15% since March 2023 and up by 36% over the same period last year.

Asset-management companies that experienced the highest net inflows and outflows (open-end funds and ETFs) in the first quarter of fiscal 2023-24:

 Top and Bottom Flows (0pen-End Funds & ETFs)—AMC - First-Quarter Fiscal-Year 2023-24

The AMCs that received the highest flows during the quarter were aided by the flows in their liquid, ultra short term, and money market categories.

 5 Top and Bottom Estimated Flows First-Quarter Fiscal 2024—ETF Categories

 5 Top and Bottom Estimated Flows First-Quarter Fiscal 2024—ETF AMCs

SBI Funds topped the flows in the ETF cateogry.

Open-end fixed-income funds witnessed net inflows of Rs 1,38,501 crore in first-quarter fiscal 2023-24. Its assets under management as of June 2023 stood at Rs 13,47,483 crores, up by 14% since the last quarter but only up by 9% since the same period last year, noted the Morningstar report. 

The "Other Schemes" category, which typically has subcategories of ETFs (other and gold), index funds, and funds of funds overseas, continues to consistently gain a lot of traction. The "Other Schemes" category saw net inflows worth Rs 13,490 crore in the first quarter of fiscal 2023-24.

During the first quarter of fiscal 2024, there were nine schemes that were launched in the index funds category. The sectoral / thematic category saw four funds being launched during the quarter, and they cumulatively garnered Rs 2,850 crore during their NFO period.

New Funds Launched—Categorywise January to June 2023—Top Eight Categories

 

The value category saw a singular fund being launched. In terms of flows, it managed to garner Rs 1,457 crore, which was the highest among the new funds that were launched.

Cumulatively, there were 40 index funds that were launched in the first half of calendar-year 2023; of these, there were 31 fixed-income index funds and nine equity-based index funds.

In the last quarter ended March 2023, passive index funds/target maturity funds garnered Rs 26,269 crore." The spike in flows in this segment could be attributed to the change in tax laws for the fixedincome mutual funds from fiscal-year 2023-24, which takes away the indexation benefit offered to investors until fiscal 2022-23. Investors therefore largely chose to invest in these funds to avail the benefit of indexation before the end of the financial year," said the report. 

With the change in the fiscal year from April onward, the amount of fixed-income index funds in the June quarter was muted. 

While SBI funds only launched two open-end funds during the first half of 2023, namely SBI S&P BSE Sensex Index and SBI Dividend Yield Fund, the cumulative assets under management of these two funds stands at Rs 4,583 crore, which is the highest among the funds that were launched by the AMCs. HDFC, on the other hand, launched 13 funds, and the cumulative AUM of these funds stands at Rs 3218 crore.

Net Flows by Category First-Quarter Fiscal-Year 2024

Asset Class AUM Split

Weightwise, both the large-cap and flexi-cap categories continue to lead the AUM split with approximately 15% and 16%, respectively, followed by mid-cap with 13%.

Cumulatively, there are 397 schemes in the open-end equity broad category as of June 2023. Currently with 130 schemes, the sectoral/thematic category has the highest number, followed by 43 schemes in the ELSS category and 36 schemes in the flexi-cap category.