Active equity funds attracted ₹74,000 crore in July-September quarter, MOAMC study
₹8.3 lakh crore in December 2013 to a staggering ₹46.4 lakh crore as of September 2023, representing a fivefold increase. According to the study, passive funds have seen a substantial increase in their AUM, surging from a modest 1.5 per cent in 2015 to over 17 per cent. Nevertheless, equity funds dominated with the largest share at 54 per cent, followed by debt at 32 per cent, hybrid at nine per cent, and the remaining five per cent comprising multi-asset, international, commodity, and solution-oriented funds.
This can be best elucidated by the strong performance of active equity funds, which witnessed substantial net inflows of approximately ₹74,000 crores during the last quarter from July to September. Passive equity funds, on the other hand, attracted net inflows of ₹900 crores during the same period. The study also indicates a rising popularity of arbitrage funds, likely due to investors perceiving them as a tax-efficient alternative to liquid funds.
Arbitrage and broad-based categories secured the majority of net inflows into equity funds during the quarter, accounting for over 80 per cent of the market share. In the equity segment, the study noted substantial net inflows into both active and passive equities, with the broad-based category receiving significant attention. The Employees Provident Fund Organisation (EPFO) was identified as the primary contributor to these inflows.
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