Sector funds show sustained traction among investors in August backed NFOs
Association of Mutual Funds in India (AMFI). This compares with the long-term average ratio of 1.6. A ratio greater than two indicates that buying inflows are twice as high as selling outflows, reflecting strong investor momentum.
Among equity funds, the sector funds have maintained a buy-to-sell ratio of over three for the fourth consecutive month and have had a ratio greater than one for 15 consecutive months.
Sector/thematic NFOs reported a net inflow of Rs 33,939 crore over the past three months, accounting for 30% of the total equity fund inflow. During the period, equity funds received a total inflow of Rs 1,15,960 crore. In August, equity NFOs totalled an inflow of Rs 10,202 crore with notable offers including the Motilal Oswal Manufacturing Fund, Motilal Oswal Business Cycle Fund, SBI Innovative Opportunities Fund, and Invesco India Manufacturing Fund.
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On a year-to-date basis, sector funds have attracted Rs 50,588 crore or 80% of the total NFO inflow of Rs 63,394 crore. Sectoral funds have accounted for 30-47% of incremental equity portfolio additions since the beginning of the year. Their assets under management (AUM) reached Rs 4.4 lakh crore at the end of August, the highest among all equity fund categories. These funds contributed 14.8% to the total equity fund AUM of Rs 30.1 lakh crore. There are over 179 sector funds out of a total of 464 equity funds, the highest number among all categories.
