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MF Flows: Inflows stay robust

ICICIdirect Research 13 Dec 2024 DISCLAIMER

Domestic flows remain strong. Inflows during the month of November came in marginally lower only due to lower flows in thematic funds which were bound come lower due to continuous higher base.

Total inflows came in at Rs 36000 crore Vs Rs 42000 crore. Ex-NFOs inflows were at Rs 33000 vs Rs 38000 crore. Ex-thematic funds, inflows were at Rs 28300 crore Vs Rs 29600 crore
In all major category (ex-thematic), flows were at similar levels like last month except for largecap category which Rs 2500 crore Vs Rs 3500 crore.

Midcap and smallcap funds continue to saw higher inflows. Midcap: Rs 4900 crore Vs Rs 4700 crore. Smallcap (ex-NFOs): Rs 3750 crore Vs Rs 3770 crore.

SIP inflows remain at same level like last month at Rs 25320 crore vs Rs 25323 (Second consecutive month of above Rs 25000 crore inflows)

In last 1 year, out of Rs 86000 crore of NFO money, 72000 crore have come in thematic funds. Flow in this thematic category is likely to moderate with fewer NFOs going forward. Ex-NFOs, monthly run-rate in thematic funds since last 6 month was Rs 8300 crore which had come down to Rs 4900 crore in November 2024. Normalized medium term run-rate could be around Rs 2500-3000 run-rate.

Overall, even assuming decline in NFOs, normalized flows in thematic funds and some moderation in midcap/smallcaps, the minimum monthly run-rate could be around Rs 25000-30000 translating into annual inflows of Rs 3 lakh crore to Rs 3.5 lakh crore.

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