New thematic schemes keep net equity fund inflows firm in August

The buy-to-sell ratio of equity funds reached an 18-month high of 2.1 in August helped by the new fund offers (NFOs) from sector funds, according to data from the Association of Mutual Funds in India (AMFI). This compares with the long-term average ratio of 1.6.

A ratio greater than two indicates that buying inflows are twice as high as selling outflows, reflecting strong investor momentum. Among equity funds, the sector funds have maintained a buy-to-sell ratio of over three for the fourth consecutive month and have had a ratio greater than one for 15 consecutive months.

Sector/thematic NFOs reported a net inflow of ₹33,939 crore over the past three months, accounting for 30% of the total equity fund inflow. During the period, equity funds received a total inflow of ₹1,15,960 crore. In August, equity NFOs totalled an inflow of ₹10,202 crore with notable offers including the Motilal Oswal Manufacturing Fund, Motilal Oswal Business Cycle Fund, SBI Innovative Opportunities Fund, and Invesco India Manufacturing Fund.

New thematic schemes keep net equity fund inflows firm in August "Chart"ETMarkets.com

On a year-to-date basis, sector funds have attracted ₹50,588 crore or 80% of the total NFO inflow of ₹63,394 crore. Sectoral funds have accounted for 30-47% of incremental equity portfolio additions since the beginning of the year. Their assets under management (AUM) reached ₹4.4 lakh crore at the end of August, the highest among all equity fund categories. These funds contributed 14.8% to the total equity fund AUM of ₹30.1 lakh crore. There are over 179 sector funds out of a total of 464 equity fund schemes, the highest number among all categories.

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