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Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
This slowdown is attributed to multiple factors, including fewer sectoral and thematic new fund offers (NFOs) and a shorter trading month.
Sandeep Bagla, CEO of Trust Mutual Fund, attributed the drop to a significant inflow spike in October driven by exceptional flows into sectoral and thematic funds.
He noted that one or two successful NFOs in these categories can generate ₹3,000-4,000 crore in inflows, which was lower in November.
Bagla emphasised that mid-cap, small-cap, and Flexi-cap categories continued to see positive growth, particularly in the small-cap sector, where performance outpaced large-cap indices like the Nifty 50.
Bagla also mentioned the impact of fewer working days in November and other distractions, such as elections and festivals, which might have slowed investor activity.
However, he remains optimistic, expecting Systematic Investment Plan (SIP) flows to rise over time.
“The numbers are strong, and SIPs continuing to add ₹25,000 crore a month is a fantastic sign for the market,” he added.
In terms of specific fund categories, large-cap funds experienced a notable decrease of 26.3%, from ₹3,452.3 crore in October to ₹2,547.9 crore in November.
On the other hand, small-cap funds saw a rise of 9.0%, growing from ₹3,772 crore to ₹4,112 crore, while mid-cap funds saw a modest increase of 4.3%, rising from ₹4,683 crore to ₹4,883.4 crore.
New Fund Offerings (NFOs) saw inflows of ₹4,052 crore in November, down from ₹6,078 crore in October.
DP Singh, Deputy MD & Joint CEO of SBI Mutual Fund, indicated that NFOs could see a pause as most innovative themes have already been launched.
“I think there will be pause for NFOs because whatever themes were working out or innovations have already come into the market. On the passive side, fund houses will complete their offerings, but this will not attract large amounts of money,” Singh said.
He added that smaller passive funds might continue launching but not bring in significant inflows.
The slowdown in overall inflows is seen as a temporary adjustment, and the market remains optimistic about sustained SIP contributions.
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