 "mutual funds")
The net inflow in Open-end mutual funds declined over 80 per cent to Rs 34,765 crore in the second quarter of the fiscal year 2023-24 (Q2 FY24), compared to the Rs 1,84,789 crore in the preceding quarter ending June 2023, according to a Morningstar report.
This is despite assets under management (AUM) of open-end funds soaring to Rs 46,29,982 crore as of September 2023, up 5 per cent compared to June 2023 and 21 per cent from the same period last year. The second quarter saw 48 new fund offerings (NFO), cumulatively raising Rs 22,049 crores during their NFO period.
Here are the top 5 AMC that saw the highest inflow and outflow:
ICICI Prudential secured an inflow of Rs 15,156 crore, emerging with the highest net flows in open-end funds and ETFs for Q2 FY24, followed closely by Kotak at Rs 7,871 crore. Nippon and Quant saw an estimated net flow of Rs 7,207 crore and Rs 5,918 crore, respectively.
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On the other end, the bottom flow was led by Aditya Birla Sun Life with an estimated outflow of Rs 13,755 crore, followed by Axis, UTI, Bandhan, and HSBC, recording net outflows of Rs 9,543 crore, Rs 3,385 crore, Rs 1,525 crore and Rs 943 crore.
New Fund Offers (NFO)
In the quarter ending September 2023, 48 new schemes were introduced, collectively amassing Rs 22,049 crore during the New Fund Offer (NFO) period. The sectoral category led the pack with the launch of 13 schemes, closely followed by 12 new Exchange-Traded Funds (ETFs). Here's a breakdown of the new funds launched from July to September 2023:
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Flows Across Asset Classes
Most asset classes witnessed net inflows during the quarter except for the fixed-income segment, which saw net outflows, according to Morningstar report. Closed-end fund categories, including fixed-income, growth, and interval categories, reported net outflows of Rs 4,524 crore during the quarter.
Open-end funds began the quarter strongly with net inflows of Rs 82,467 crore in July 2023, dipped to Rs 16,180 crore in August 2023, and concluded with disappointing net outflows of Rs 63,882 crore in September 2023.
Net flows into open-end equity funds have remained positive over the past 10 quarters. In the September 2023 quarter, net flows increased to Rs 41,962 crore, significantly up from the previous quarter's net inflows of Rs 18,358 crore.
Fixed-income funds faced challenges with net outflows of Rs 65,944 crore in the quarter, following a positive trend in the first quarter of fiscal 2023-24.
The allocation category observed net inflows of Rs 48,153 crores in September 2023, marking the second consecutive quarter of positive flows after three-quarters of outflows.
Solutions-oriented and other categories consistently maintained net inflows, recording Rs 479 crore and Rs 10,115 crore, respectively, in the quarter ending September 2023.
The Morningstar report also said that the "Other Schemes" category, including ETFs (other and gold), index funds, and funds of funds overseas, attracted net inflows of Rs 10,115 crore in Q2 FY 2023-24.
ETFs saw an inflow of Rs 4,782 crore in the quarter that ended September 2023. This after it witnessed net outflows to the tune of Rs 2,011 crore in the quarter that ended March 2023, which was its first in the last three years, the category bounced back with net inflows of Rs 14,717 crores in the quarter that ended June 2023.
