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Economic Times
3 days ago
- Business
- Economic Times
Ownership of domestic mutual funds in all-listed universe scale record high to over 10% in FY25: NSE Pulse Report
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in MF 1. Gold ETF investment jumps 170% as jewellery demand slumps: Motilal Oswal Private Wealth Tired of too many ads? Remove Ads The ownership of domestic mutual funds in the all-listed universe have scaled a record high of 10.4% in FY25, marking the first double-digit reading and outpacing individual investor share for the first time, according to the NSE Pulse Report Individuals as direct and indirect (via mutual funds) investors today own a record-high of 18.2% of the total market cap, unchanged from the previous quarter (Rs74.5 lakh crore; 5Y/10Y CAGR: +35.7%/16.9%), outpacing the share of FPIs in FY25 for the first time since June 2021, with a strong resurgence in SIP-led inflows, DMF ownership in NSE-listed companies has climbed steadily, reaching all-time holdings by DMFs through ETFs and index funds in NSE-listed companies have surged in recent years. The AUM of passive funds grew at a robust CAGR of 59% over the past decade, substantially outpacing the 24% annualized growth of actively managed equity funds, driven by a low starting base and rising retail participation in passive Q4FY25, passive funds' AUM rose 1.9% QoQ to Rs 8.2 lakh crore, recovering from a marginal decline in the previous quarter, but grew by a robust 25.8% in the whole of FY25. In contrast, actively managed equity fund AUM declined 3.4% QoQ to Rs 34.2 lakh crore in the March quarter, though it still posted a healthy 23.6% increase over FY25. As a result, the share of passive funds in total equity-oriented mutual fund AUM climbed 72 bps QoQ to a record high of 20.8% as of March the 10.4% of NSE-listed market capitalization held by DMFs, passive funds' share rose 16 bps QoQ to a new peak of 2.0%—breaking out of the 1.7 -- 1.8% range seen over the past eight quarters. Active fund ownership also increased by 25 bps to a record 8.4%. In terms of free-float market capitalization, passive funds' share rose 30 bps QoQ to an all-time high of 4.0%, while active funds' share increased for the seventh consecutive quarter, up 42 bps to 16.8%.Passive mutual funds AUM, across equity, debt, gold, silver, and others, reached an all-time high of Rs 11.6 lakh crore in April 2025 compared to Rs 11.1 lakh crore in March 2025, registering a strong 21.8% YoY/3.8% MoM passive categories, income/debt-oriented index funds, specifically Target Maturity Index Funds (TMIFs), recorded the highest sequential growth of 9.3%, with AUM rising from Rs 96,025 crore in March 2025 to over Rs 1 lakh crore in April 2025. This was followed by Gold ETF, which registered a 6.2% increase in AUM, primarily driven by mark-to-market gains, more than making up for reduced net a steady decline over the previous three months, the mutual fund industry's AAUM rose by a strong 22.2% YoY/4.2% MoM to an all-time high of Rs 69.5 lakh crore in April 2025. Strong rebound in equity markets, following the de-escalation of tariff uncertainty in the second half of the month, coupled with continued inflows into mutual funds via the SIP route, were some of the factors that contributed to the terms of fund flows, mutual funds witnessed a sharp reversal in April 2025, with net inflows turning positive at Rs 2.8 lakh crore, compared to a net outflow of Rs 1.6 lakh crore in March terms of scheme composition, the total number of mutual fund schemes declined for the first time in 22 months, edging down from 1,760 in March 2025 to 1,758 in April 2025. Of the total, 1,656 were open-ended schemes, 98 were closed-ended, and 4 were interval schemes. Close-ended schemes exhibited a marginal increase of 1% from 26,459 crore in March 2025 to Rs 26,753 crore in April inflows into mutual funds via the SIP route has remained robust, with SIP inflows reaching a record Rs 26,632 crore in April 2025, boosting the SIP AUM to Rs ~14 lakh crore—nearly 20% of the industry's fact, gross SIP inflows have remained strong despite heightened market uncertainty, indicating a steady and disciplined investment approach among investors. Notwithstanding rising inflows, the stoppage ratio—calculated as the number of SIPs discontinued/tenure completed divided by the number of new SIPs registered—surged to a historic 297.8% in April 2025. This is primarily attributed to the reconciliation and derecognition of dormant SIP accounts as part of the initiative taken by the mutual fund industry to comply with SEBI's regulatory the total industry AUM, equity funds' AUM increased from Rs 36.7 lakh crore in March 2025 to Rs 38.2 lakh crore in April 2025, registering a 4.1% MoM increase. The debt funds' AUM, on the other hand, increased at a slightly higher pace of 5.2% MoM from Rs 19.3 lakh crore in March 2025 to Rs 20.3 lakh crore in April 2025. This resulted in the share of debt in total mutual fund AUM rising marginally to 29.2% by April-end, even as it remains much below the peak share of 34.2% in Sep' meaningful drop in debt AUM is a result of the combination of robust returns generated by equity markets, continued inflows into equity-focused funds, and tapering flows into debt funds after the removal of the indexation benefit. In contrast, Hybrid and other funds observed a marginal decline in the proportion of total AUM from 13.9% (2.3%) in March 2025 to 13.7% (2.2%) in April April 2025, the top five states continued to dominate equity mutual fund AUM, collectively accounting for 59.4% of the total equity AUM, unchanged from the previous month. Despite a broader market recovery, the equity AUM in most states is yet to return to their December 2024 levels, indicating an uneven regional recovery in investor April 2025, fund mobilisation through new mutual fund schemes fell sharply to Rs 350 crore, down 91.4% MoM in April 2025 from Rs 4,085 crore in March 2025, marking the lowest level in the past 34 months. This was owing to a sharp drop in new scheme launches, with the month gone by seeing just 7 new schemes getting launched vs. 30 in March 2025.
Economic Times
3 days ago
- Business
- Economic Times
Gold ETF investment jumps 170% as jewellery demand slumps: Motilal Oswal Private Wealth
Global gold demand hit a Q1 record in 2025, propelled by strong ETF inflows and sustained central bank buying, even as jewellery demand declined sharply due to high prices. According to Motilal Oswal Private Wealth, gold prices soared to record highs amid geopolitical tensions, trade wars, and a weakening US dollar, pushing overall market value significantly higher despite only a modest supply increase. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in MF 1. Can Ambani do mutual fund magic with Aladdin? Global gold demand reached a Q1 record in 2025, driven by strong ETF inflows and continued central bank buying, despite a slowdown from the previous year. Meanwhile, jewellery demand fell sharply due to high prices, according to a release by Motilal Oswal Private Wealth The gold market experienced a historic surge, with prices reaching record highs amid escalating geopolitical tensions, tariff wars, and a weakening US dollar. Total supply rose modestly, but the soaring prices led to a significant increase in overall market demand saw a dramatic 170% year-on-year rise, driven by a strong rebound in gold ETF inflows—particularly in Europe, Asia, and India. Central banks maintained robust buying, adding 244 tonnes, signaling continued confidence in gold as a strategic reserve asset, especially among emerging demand, however, declined sharply due to high prices. In India, volumes dropped 25%—the lowest quarterly level since Q3 2020—as record prices impacted affordability. Despite the volume drop, the value of jewellery demand in India was 3% higher to the release, the first quarter of 2025 witnessed a dynamic gold market, marked by record-setting prices and notable shifts in demand across various gold supply reached 1,206 tonnes, a 1% year-on-year increase and the highest first-quarter supply since 2016. This translated into a significant 40% year-on-year rise in market value, reflecting the surge in gold prices Gold ETF investments drove the sharp jump in overall gold investment demand in Q1 2025, which reached 552 tonnes—a 170% increase year-on-year. This level nearly matched that of Q1 2022, which followed the outbreak of the Russia-Ukraine war, the release surge was primarily driven by a sharp revival in gold ETF inflows, which recorded their strongest quarterly demand in three years. Global gold-backed ETFs saw holdings increase by 226 tonnes during the quarter, bringing collective holdings to 3,445 tonnes. This was fueled by escalating trade tensions and strong gold price momentum, as investors rushed toward the safety of gold.
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Business Standard
3 days ago
- Business
- Business Standard
170% surge in demand: Indians are ditching jewellery for gold ETFs in 2025
Gold may still shine, but in 2025, it's no longer just for the wedding box. As prices surged to a record Rs 93,217 per 10 grams, Indian investors made a decisive shift—pulling back from heavy jewellery buys and pouring money into gold ETFs. According to Motilal Oswal Private Wealth, investment demand soared 170% year-on-year, driven by market volatility, geopolitical tensions, and the search for safer, smarter assets. Jewelry demand slumped 25% in volume, but ETFs took center stage. But behind this shiny spike was a quiet shift in how Indians viewed the yellow metal—not just as jewelry, but as an investment powerhouse. While traditional jewelry buying dipped by 25% in volume, Indian investors were pouring their money into gold ETFs and digital gold products. Investment demand soared 170% year-on-year, largely thanks to robust gold-backed ETF inflows, especially in Europe, Asia, and India. In fact, Indian ETF holdings grew by 11%, signaling a clear pivot toward paper gold, where convenience, liquidity, and compounding returns outweigh the emotional pull of ornaments. "Investment in gold ETFs lead to a significant jump gold investment demand in Q1 2025, reaching 552t, marking a 170% y/y increase. This level almost matched that seen in Q1 2022 following the outbreak of the Russia-Ukraine war. The surge was primarily driven by a sharp revival in gold ETF inflows, which recorded their strongest quarterly demand for three years. Global gold-backed ETFs saw holdings increase by 226 tonnes during the quarter, bringing collective holdings to 3,445 tonnes. This was boosted by trade tensions and gold price momentum, with investors rushing for the safety of gold," said the report. India also showed strong growth in ETF holdings, increasing by 11% over the period. Why now? Protection from volatility: With markets on edge, gold proved its mettle once again as a safe-haven asset. Diversification: Central banks (including RBI) continued to stockpile gold, reinforcing trust in its long-term value. Tax-efficient growth: ETFs offered better post-tax returns than physical gold, with no making charges or storage hassles. Consumers responded to record prices by trading in old jewelry, purchasing lighter pieces, or opting for gold loans rather than new buys. Nearly 45% of gold purchases in Q1 involved some form of exchange. What about jewelry? Jewelry demand took a hit, no doubt. But even with a 25% drop in volume, value-based demand was up 3%, proving gold's undying allure—even in lean times. Need-based purchases like wedding jewelry still held ground, while discretionary buying paused. Jewellery Demand Contracts on High Prices "India experienced a 25% y/y fall to 71t, the lowest quarterly volume since Q3 2020, as the record price impacted affordability. Despite the volume drop, the value of demand in India was 3% higher y/y. Consumers adapted to high prices by buying smaller or more lightweight pieces, holding back purchases, or opting to trade in old jewelry for new. In India, around 40-45% of purchases reportedly involved some form of exchange by the end of the quarter. The trend of gold loans, where jewelry is pledged as collateral, also continued to grow in India. While need based purchases like those for weddings held up relatively well, they were not enough to offset the drop in discretionary buying," noted the report. Global gold demand hit a Q1 record in 2025, driven by strong ETF inflows and continued central bank buying despite a slowdown from last year, while jewelry demand fell sharply due to high prices. India, gold jewelry consumption dropped in volume but remained resilient in value terms, with the Reserve Bank of India modestly increasing its reserves, reflecting ongoing price sensitivity and gold's continued strategic portfolio importance. RBI plays it cool The Reserve Bank of India also adjusted its strategy, moderating gold purchases to just 0.6 tonnes in March. But even with slower buying, RBI's total holdings reached a record 879.6 tonnes, comprising nearly 11.7% of India's forex reserves. Gold's role in India's economic armor remains solid.
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Business Standard
4 days ago
- Business
- Business Standard
Earnings to events: Motilal Oswal says investors must alter their focus
With most adverse developments now under control, analysts from Motilal Oswal Private Wealth suggest investors switch their attention towards 'earnings' from 'events' Listen to This Article It has been a choppy ride for the Indian stock markets in the last few weeks as they negotiated geopolitical issues between India and Pakistan, Donald Trump's tariff related tantrums amid corporate earnings for the March 2025 (Q4-FY25) quarter. With most adverse developments now under control, analysts from Motilal Oswal Private Wealth suggest investors switch their attention towards 'earnings' from 'events'. As an investment strategy, they advise investors with lower equity allocations to consider lump-sum investments in Hybrid, Large-Cap, and Flexi Cap funds, and adopt a staggered approach for mid-and-small-caps over the next two–three months, with faster deployment if
Time of India
5 days ago
- Business
- Time of India
Navigating volatility: Why staggered SIPs make sense for small & mid cap MFs right now
Considering the recent market developments, investors need to be more strategic with their portfolio allocation and should consider a lump sum approach more suitable for hybrid, large cap, and flexi cap mutual funds as these categories are considered relatively stable and can absorb volatility better, making them appropriate for immediate deployment of capital, according to a release by Motilal Oswal Private Wealth. On the other hand, mid and small cap strategies are better approached with caution and given the sharp run-up in these segments and their inherent volatility, a staggered investment approach over the next 2–3 months is advisable. Any potential market pullbacks in the near term should be viewed as opportunities for more aggressive allocation in these segments. Also Read | Defence sector based mutual funds rally up to 60% in 3 months. Will the momentum continue? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Crossout 2.0: Supercharged Crossout Play Now Undo Large-cap valuations are now around their 10-year average, while mid- and small-caps still trade at a premium, though select opportunities exist. In the fixed income space, recent economic indicators point towards a benign inflation trend and rising concerns over economic growth. These factors have prompted the Reserve Bank of India (RBI) to shift its stance slightly in favor of supporting the economy. This macro environment bodes well for fixed income investors, particularly in funds that can benefit from falling interest rates or stable yields. Live Events '25% - 35% of the portfolio may be invested in Arbitrage Funds (minimum 3 months holding period), Floating Rate Funds (9 – 12 months holding period), Absolute Return Long/Short strategies (minimum 12 -15 months holding period). For tax efficient fixed income alternative solutions, 20% - 25% of the portfolio may be allocated in Conservative Equity Savings funds (minimum 3 years holding period),' the report said. Motilal Oswal Private Wealth conducted a small study that tracked the journey of the Nifty 50 Index and two actively managed funds in the last 29 years. The study yielded some discoveries of the equity markets of which first was that negative or low return periods were perpetually followed by medium to high return periods. This observation is a simple explanation for understanding that equity returns are nonlinear and tend to be bunched in a few years. Another important finding was that approximately 66.67% of the time one-year absolute returns were positive. Also Read | 8 equity mutual funds lose over 10% in 2025. Have you invested in any? Secondly, in the case of active funds, there were some further motivating discoveries. In spite of having a poor entry point and suffering negative returns in the first year, the active fund managers were successfully able to produce positive annualized returns on a 5-year period and double digit returns on a 10-year period. And lastly, compounding has a much larger effect on investment returns than realized and that one should not get easily spooked by negative returns as they will fade with time. When looking at these several data points, the bear markets appear to be like minor speed bumps in a consistent rally, but this is a view in hindsight.
