PASSIVE FLOW STORY FOR NOVEMBER 2024
Since the robust passive inflows of October, there has been a steady fall in the next two months. Net inflows into passive funds fell nearly 70% to ₹7,061 Crore in November 2024. However, it fell by another 90% to just ₹784 Crore of net inflows in December 2024. Let us quickly look at the passive fund categories that saw robust inflows. Domestic equity index funds led the way with inflows of ₹4,543 Crore followed by Gold ETFs at ₹640 Crore, Silver ETFs at ₹477 Crore, and TMIFs at ₹445 Crore in December. Among the categories that saw net outflows in December 2024 were Debt oriented ETFs ₹(2,525) and Equity Oriented Domestic ETFs at ₹(2,470) Crore. Out of the 12 categories of passive funds with flows; 6 categories showed positive net flows and 6 showed negative flows.
HOW INDEX FUNDS AND INDEX ETF PERFORMED IN DECEMBER 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.
Passive Fund Scheme Name |
1 Year (%) Returns | 3-Year (%) Returns | Launch (%) Returns | ||
CPSE ETF | 23.72 | 39.61 | 15.79 | ||
Nippon India ETF Nifty PSU Bank BEES | 10.37 | 33.56 | 5.90 | ||
Kotak Nifty PSU Bank ETF | 10.35 | 33.56 | 5.11 | ||
BHARAT 22 ETF | 14.18 | 31.41 | 15.53 | ||
Motilal Oswal Nifty Midcap 100 ETF | 19.31 | 22.07 | 15.65 | ||
ICICI Prudential Nifty Midcap 150 ETF | 19.38 | 21.24 | 26.05 | ||
Nippon India ETF Nifty Midcap 150 | 19.28 | 21.23 | 23.63 | ||
ABSL Nifty Midcap 150 Index Fund | 18.82 | 20.45 | 24.32 | ||
Motilal Oswal Nifty Midcap 150 Index Fund | 18.48 | 20.34 | 26.95 | ||
Nippon India Nifty Midcap 150 Index Fund | 18.40 | 20.31 | 24.32 | ||
Data Source: AMFI
There are a total of 172 index funds and index ETFs with minimum 3 year track record. If you look at the average returns, these 172 funds have generated average returns of 14.64% over a 1-year period. Over a 3-year period, the CAGR returns on these funds stands at 12.62%. Let us now shift focus to how the fund of funds (FOFs) have performed in December 2024.
HOW FUND OF FUNDS (FOF) PERFORMED IN DECEMBER 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 | 14.14 | 31.36 | 18.87 |
ICICI Prudential India Equity FOF | 22.59 | 19.67 | 24.61 |
Motilal Oswal Nasdaq 100 FOF | 47.98 | 19.17 | 26.28 |
ICICI Pru Thematic Advantage Fund (FOF) | 22.60 | 17.28 | 15.61 |
Kotak Multi Asset Allocator FOF – Dynamic | 18.32 | 17.01 | 16.32 |
Nippon India Asset Allocator FOF | 16.90 | 16.77 | 18.90 |
Quantum Gold Savings Fund | 22.96 | 16.57 | 12.20 |
Axis Gold Fund | 22.97 | 16.54 | 6.52 |
LIC MF Gold ETF FOF | 23.62 | 16.51 | 5.99 |
SBI Gold Fund | 22.79 | 16.49 | 6.46 |
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 14.89% over a 1-year period. Over a 3-year period, the CAGR returns on these funds stands at 9.93%. 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: DECEMBER 2024 OVER DECEMBER 2023
We see some good tidings from the folio growth numbers of passive funds in December 2024. The table below compares the folio growth of these 12 categories of passive funds as of end December 2024 over December 2023.
Passive Mutual Fund Schemes (Folios) |
Folios Dec-24 (in Numbers) |
Folios Dec-23 (in Numbers) |
Growth (%) |
Silver ETF | 6,21,639 | 1,52,259 | 308.28% |
Equity oriented Index Funds (Domestic Index Funds) | 1,20,10,532 | 58,29,735 | 106.02% |
Equity oriented ETFs (International ETFs) | 6,85,782 | 3,55,392 | 92.96% |
Other Index Funds | 92,034 | 58,245 | 58.01% |
Equity oriented ETFs (Domestic ETFs) | 1,49,47,918 | 1,03,28,959 | 44.72% |
Gold ETF | 64,05,088 | 49,11,226 | 30.42% |
Income/Debt Oriented Index Funds (Other than TMIF) | 18,470 | 15,324 | 20.53% |
Income/Debt Oriented Index Funds (TMIF) | 1,69,843 | 1,43,325 | 18.50% |
Income/Debt Oriented ETFs | 23,41,427 | 19,87,250 | 17.82% |
Equity oriented Index Funds (International Index Funds) | 2,54,703 | 2,36,818 | 7.55% |
Fund of funds investing overseas in Active Funds | 7,32,413 | 8,00,853 | -8.55% |
Fund of funds investing overseas in Passive Funds | 6,39,439 | 7,16,186 | -10.72% |
Total of Passive Funds | 3,89,19,288 | 2,55,35,572 | 52.41% |
Data Source: AMFI (TMIF is target maturity index funds)
Here are some key inferences from the yoy growth in passive folios.
The good news is that the folio growth in passive funds has been above 50% in a rather tough month.
PASSIVE FUNDS AUM: DECEMBER 2024 OVER DECEMBER 2023
We have seen some pressure on AUM growth of passive funds in recent months due to the market correction. Here is the AUM compared yoy
Passive Mutual Fund Schemes |
AUM Dec-24 (₹ Crore) |
AUM Dec-23 (₹ Crore) |
Growth (%) |
Silver ETF | 12,317.45 | 3,031.62 | 306.30% |
Equity oriented Index Funds (Domestic Index Funds) | 1,59,156.38 | 84,379.58 | 88.62% |
Gold ETF | 44,595.60 | 27,326.41 | 63.20% |
Equity oriented ETFs (International ETFs) | 13,541.19 | 9,931.89 | 36.34% |
Equity oriented Index Funds (International Index Funds) | 5,498.22 | 4,048.45 | 35.81% |
Equity oriented ETFs (Domestic ETFs) | 6,44,370.67 | 5,19,927.53 | 23.93% |
Fund of funds investing overseas in Passive Funds | 8,668.84 | 7,382.28 | 17.43% |
Other Index Funds | 3,490.31 | 3,222.08 | 8.32% |
Fund of funds investing overseas in Active Funds | 17,943.96 | 16,681.73 | 7.57% |
Income/Debt Oriented ETFs | 95,145.89 | 90,131.30 | 5.56% |
Income/Debt Oriented Index Funds (TMIF) | 93,320.93 | 93,369.60 | -0.05% |
Income/Debt Oriented Index Funds (Other than TMIF) | 13,611.36 | 14,639.51 | -7.02% |
Total of Passive Funds | 11,11,660.80 | 8,74,072.00 | 27.18% |
Data Source: AMFI (TMIF is target maturity index funds)
Here are some key inferences we can draw from the above comparative table.
While the AUM growth has been hit by the weakness in the market, the positive takeaway is that the folio growth continues to be robust.
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