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 |
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 |
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 |
Folios Nov-24 |
Folios Nov-23 |
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.
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 |
AUM Sep-24 |
AUM Sep-23 |
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.
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.
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