The bullish momentum flows in the stock market continues to hold strong, despite tad correction in heavyweights from recent all-time highs. Asset management companies are cashing in at the moment, with a flurry of new fund offers (NFOs) hitting the market to capture the influx of investor interest.
Currently, there are 16 ongoing NFOs, with 6 actively managed funds—three sectoral and three pure equity schemes, launched by newer fund houses that lacked offerings in these categories, as per latest report by Nuvama. The list comprises 10 index funds, including SBI Nifty India Consumption Index Fund, Axis Nifty500 Value 50 Index Fund, Tata Nifty Capital markets Index Fund, Mirae Asset Nifty Total Market Index Fund, Baroda BNP Paribas Nifty Midcap 150 index Funds, Bandhan Nifty500 Momentum 50 Index Fund, Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund.
“What's particularly noteworthy is the growing shift towards passive investing, with the remaining 10 NFOs being passive schemes,” says Abhilash Pagaria, Head, Nuvama Alternative and Quantitative research.
“While the potential of passive schemes is significant, their AUM growth may take time to catch up, especially with newer indices outside the popular Nifty and Sensex,” he adds.
As per the report, retail investors and HNIs in India still show a strong preference for actively managed schemes, with Nifty 50 and Sensex benefiting from most EPFO inflows.
In recent times, mutual funds remained a key stabilising factor for capital markets in India, registering a consistent inflow of investments. The industry assets rose to a new high, with an asset base of ₹67.09 lakh crore at the end of September 2024. A total of 27 schemes were launched in September 2024, all in the category of open-ended schemes, raising a total of ₹14,575 crore.
However, the overall net inflows into the equity mutual fund schemes declined by 10% from ₹38,239 crore to ₹34,302 crore, led by in Large, Flexi cap, Small Cap, Sectoral and thematic categories.
The monthly Systematic Investment Plans (SIPs) contributions crossed the ₹24,000 crore mark for the first time during the month, as per data from the Association of Mutual Funds in India (AMFI). The assets under management (AUM) of SIPs attained a new peak, touching ₹13.81 lakh crore in September, from ₹13.38 lakh crore in the previous month.
The AMFI data further revealed that the number of new SIP registrations in September surged to 66,38,857, while the total number of active SIP accounts also hit a new record high of 9.87 crore, up from 9.61 crore in August.
"September 2024 has showcased the unwavering resilience. The consistent inflow of investments reflects the increasing trust and confidence in mutual funds. The industry's continued diversification into various product categories and innovative offerings is driving growth and providing investors with a wider range of options to meet their diverse financial goals,” says Venkat Chalasani, Chief Executive, AMFI.
“The steadily increasing SIP contribution in Sept 2024 highlights the shifting investor sentiment towards disciplined and long-term wealth accumulation,” adds Chalasani.
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