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High investor risk appetite leads to massive inflows into small cap funds

High investor risk appetite leads to massive inflows into small cap funds

New Delhi, Nov 7 (SocialNews.XYZ) Within the Rs 42,000 crore net inflows into broad based equity funds, active small cap funds accounted for nearly one fourth of the net inflows.

According to the findings of a study by Motilal Oswal AMC, Active Equity funds led the way with net inflows of about Rs 74,000 crore in the July–September quarter, followed by Rs 9,000 crore in Passive Equity funds.

 

The study shows Arbitrage funds gaining popularity presumably as investors turned to Arbitrage funds as a more tax-efficient substitute to Liquid funds.

At more than 80 per cent of market share,  it revealed a total net inflow of Rs 51,000 crore in mutual funds (across all categories/asset classes) in the last quarter, of which Rs 39,000 crore was in Active funds and Rs 12,000 crore in Passive funds.

Twenty-nine new schemes were launched during this period, collecting Rs 16,000 crore in AUM.

The data in the study reveals that broad-based funds have seen the highest net inflows at Rs 42,000 crore, while ELSS and Focused funds registered combined net outflows of Rs 2,000 crore.

Looking at the big picture, just 3 AMCs took away almost half of the quarterly net inflows, while 1 AMC accounted for two third of the quarterly net outflows.

Source: IANS

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High investor risk appetite leads to massive inflows into small cap funds

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