iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Passive fund folios grow over 50% for first time in November 2024

13 Dec 2024 , 10:09 AM

PASSIVE FLOW STORY FOR NOVEMBER 2024

After a robust October, passive fund flows fell to almost a third in November 2024.The net inflows into passive funds at ₹7,061 Crore in November 2024; less than a third of the October passive fund flows, largely on account of net selling in arbitrage funds. Let us look at category-wise flows among passives; and with the positive flows. Equity oriented domestic index funds and equity oriented domestic index ETFs saw bulk of the passive net inflows at ₹5,187 Crore and ₹2,050 Crore respectively in November 2024; while gold ETFs also participated with net inflows of ₹1,257 Crore, as did Silver ETFs at ₹930 Crore. There were several categories that saw net outflows in November 2024. These included Debt oriented ETFs ₹(1,517) and TMIFs at ₹(806) Crore. Out of the 12 categories of passive funds with flows; 7 categories showed positive net flows and 5 showed negative flows.

HOW INDEX FUNDS AND INDEX ETF PERFORMED IN NOVEMBER 2024

The table below ranks index funds and index ETFs in India on 3-year returns (regular plans). We have only considered funds where a 3-year track record is available and the other funds without such a track record have been eliminated.

Passive Fund
Scheme Name

1 Year (%) Returns

3-Year (%) Returns

Launch (%) Returns

CPSE ETF

47.40

45.41

16.80

Kotak Nifty PSU Bank ETF

27.94

37.21

5.91

Nippon India ETF Nifty PSU Bank BEES

27.98

37.21

6.70

BHARAT 22 ETF

33.73

36.15

17.15

Mirae Asset NYSE FANG+ ETF

62.50

25.07

26.08

Motilal Oswal Nifty Midcap 100 ETF

33.26

24.50

16.27

ICICI Prudential Nifty Midcap 150 ETF

32.63

23.62

28.01

Nippon India ETF Nifty Midcap 150

32.46

23.60

25.18

Nippon India ETF Nifty Dividend OPPS 50

31.76

23.54

16.21

ABSL Nifty Midcap 150 Index Fund

32.09

22.82

26.87

Data Source: AMFI

There are a total of 169 index funds and index ETFs with minimum 3 year track record. If you look at the average returns, these 169 funds have generated average returns of 24.13% over a 1-year period. Over a 3-year period, the CAGR returns on these funds stands at 14.92%. Let us now shift focus to how the fund of funds (FOFs) have performed in November 2024.

HOW FUND OF FUNDS (FOF) PERFORMED IN NOVEMBER 2024

The table below ranks fund of funds (FOFs) in India on 3-year returns (regular plans). We have only considered funds where a 3-year track record is available and the other funds without such a track record have been eliminated.

Passive Fund
Scheme Name

1 Year (%) Returns

3-Year (%) Returns

Launch (%) Returns

ICICI Prudential BHARAT 22 FOF

44.06

33.21

20.36

Nippon India Asset Allocator FOF

25.72

16.12

19.59

Nippon India Nifty Next 50 Junior BEES FOF

49.58

16.00

17.67

ICICI Pru Nifty Alpha Low – Vol 30 ETF FOF

34.79

15.88

14.48

ICICI Prudential Passive Strategy Fund (FOF)

29.13

14.60

13.98

LIC MF Gold ETF FOF

22.05

13.88

5.72

Invesco India Gold ETF FOF

22.22

13.84

6.14

SBI Gold Fund

22.14

13.79

6.24

Axis Gold Fund

21.38

13.79

6.27

Quantum Gold Savings Fund

22.02

13.72

11.90

Data Source: AMFI

There are a total of 79 fund of funds (FOF) with minimum 3 year track record. If you look at the average returns, these 79 funds have generated average returns of 22.45% over a 1-year period. Over a 3-year period, the CAGR returns on these funds stands at 10.48%. However, what is important is that in index ETFs, index funds and in FOFs, there are wide variations in terms of 3-year returns, which could be due to the disparate nature of these funds.

PASSIVE FUND FOLIO GROWTH: NOVEMBER 2024 OVER NOVEMBER 2023

We see some good tidings from the folio growth numbers of passive funds in November 2024. Only 12 categories with meaningful flows have been considered in these rankings of folios. The table below compares the folio numbers of these 12 categories of passive funds as of end November 2024 over November 2023. They are ranked on folio growth.

Passive Mutual Fund
Schemes (Folios)

Folios Nov-24
(in Numbers)

Folios Nov-23
(in Numbers)

Growth
(%)

Silver ETF

5,82,990

1,43,973

304.93%

Equity oriented Index Funds (Domestic Index Funds)

1,16,93,034

55,22,356

111.74%

Equity oriented ETFs (International ETFs)

6,45,788

3,38,153

90.98%

Other Index Funds

89,572

54,653

63.89%

Equity oriented ETFs (Domestic ETFs)

1,47,83,768

1,02,87,068

43.71%

Gold ETF

62,52,992

48,91,187

27.84%

Income/Debt Oriented Index Funds (TMIF)

1,69,732

1,40,310

20.97%

Income/Debt Oriented ETFs

23,35,324

19,49,996

19.76%

Income/Debt Oriented Index Funds (Other than TMIF)

17,760

15,444

15.00%

Equity oriented Index Funds (International Index Funds)

2,55,187

2,36,359

7.97%

Fund of funds investing overseas in Passive Funds

6,49,986

6,69,188

-2.87%

Fund of funds investing overseas in Active Funds

7,29,587

8,17,075

-10.71%

Total of Passive Funds

3,82,05,720

2,50,65,762

52.42%

Data Source: AMFI (TMIF is target maturity index funds)

The above table compares the passive fund folios at the end of November 2024 with the passive fund folios at the end of November 2023 (12-month yoy growth). Here are the inferences.

  • Passive fund folios yoy growth in October 2024 stood at a robust 52.42%; compared to 49.71% in October, 45.71% in September, 42.57% in August, 38.86% in July, and 34.24% in June 2024. That is progressive build-up of investor intensity, if you go by growth in folios. The total folios of passive funds stand at 382.06 Lakhs as of end November 2024; compared to 368.23 Lakhs as of October, 350.60 Lakhs in September, 336.83 Lakhs in August, and 321.81 Lakh as of July 2024.
  •  What about leaders and laggards? Again, silver led folio growth at 304.93%, followed by equity oriented domestic index funds at 111.74% and equity oriented international ETFs at 90.98%. A total of 10 out of 12 categories saw folio expansion, with only FOFs investing in overseas active funds and FOFs investing in overseas passive funds; seeing a contraction in folios in the month of November 2024 on a yoy basis.

Even in a rather difficult month, the folio growth of passive funds has been relatively robust, which shows passive funds building traction. For the first time, the folio growth on a yoy basis has crossed 50%.

PASSIVE FUNDS AUM: NOVEMBER 2024 OVER NOVEMBER 2023

We have seen some pressure on AUM growth of passive funds in recent months due to the market correction as the passive AUM has fallen sequentially. That applies to November 2024 too, although the cuts are not as sharp as it was in October 2024.

Passive Mutual
Fund Schemes

AUM Sep-24
(₹ Crore)

AUM Sep-23
(₹ Crore)

Growth
(%)

Silver ETF

12,333.66

2,984.04

313.32%

Equity oriented Index Funds (Domestic Index Funds)

1,58,037.04

75,025.32

110.64%

Gold ETF

44,244.82

26,995.73

63.90%

Equity oriented Index Funds (International Index Funds)

5,511.19

3,871.47

42.35%

Equity oriented ETFs (International ETFs)

13,194.39

9,416.87

40.11%

Equity oriented ETFs (Domestic ETFs)

6,62,700.66

4,79,360.67

38.25%

Fund of funds investing overseas in Passive Funds

8,656.28

6,940.03

24.73%

Fund of funds investing overseas in Active Funds

18,076.08

16,478.10

9.70%

Income/Debt Oriented ETFs

97,514.67

89,345.68

9.14%

Other Index Funds

3,507.61

3,448.21

1.72%

Income/Debt Oriented Index Funds (TMIF)

92,377.88

94,522.38

-2.27%

Income/Debt Oriented Index Funds (Other than TMIF)

13,741.35

14,545.49

-5.53%

Total of Passive Funds

11,29,895.63

8,22,934.00

37.30%

Data Source: AMFI (TMIF is target maturity index funds)

The above table compares the AUM at the end of November 2024 with the AUM at the end of November 2023 (12-month yoy growth). Here are the inferences.

  • Passive fund folios yoy growth in November 2024 tapered to 37.3%; compared to 42.87% in October, 44.92% in September, 44.62% in August, and 40.19% in July 2024. Not only has the growth in AUM come down sharply in November and October 2024; but even the overall AUM is down sequentially. However, that is more due to the sharp fall in the equity markets in the last two months on account of the FPI sell-off. In such conditions, the folios give a more reliable picture.
  • What about leaders and laggards? Again, silver AUM led the growth at 313.32%, followed by domestic index funds at 110.64% and Gold ETFs at 63.90%. A total of 10 out of 12 categories saw folio expansion, with debt index funds (ex-TMIF) contracting -5.53% and debt oriented TMIFs contracting by -2.27% in AUM in November 2024 on yoy basis.

Even in a rather difficult month, the folio growth of passive funds has been relatively robust, which shows passive funds building traction. Despite the value loss, as is evident in the pressure on Aum growth, the folios have continued to add up. The past experience has been that passive funds do extremely well when the active funds start to become too volatile. We may be just about seeing that sort of trend starting to manifest in the markets.

Related Tags

  • AUM
  • GoldETF
  • IndexETF
  • IndexFunds
  • MutualFunds
  • PassiveFund
  • SIlverETF
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest Right News

BSE: Firing on all cylinders
9 Apr 2024|10:33 AM
Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.