Flows into passive funds steal a March over active schemes in 2HFY21

Officials in the industry say since several large-cap funds have not been generating alpha, investors may be opting for passive funds instead

funds, investments, stocks, valuations, returns, investors, MFs, mutual funds, savings

Chirag Madia Mumbai
Domestic mutual fund investors are showing a tilt towards passive funds—schemes that track a benchmark index or a basket of securities or a commodity. During the past six months, passive funds have seen net flows of Rs 27,083 crore. In March, such schemes reported their fifth straight montly inflows. Actively-managed funds, on the other hand, have seen an exodus. While in March, they reported net inflows of Rs 9,115 crore, their six-month net flow tally stands at a negative Rs 36,395 crore.

Industry participants feel that this is the inflection point for passive funds and they could continue to dominate the MF industry for next few years.

The passive product category includes index funds, equity exchange traded funds (ETFs), gold

First Published: Apr 13 2021 | 6:11 PM IST

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