The equity market's performance in 2023 was mirrored in the mutual funds and hence substantial investments flowed into equity funds across various sectors. The mutual fund industry surged from ₹8.25 lakh crore asset under management (AUM) in 2013 to ₹50 lakh crore AUM in 2023 over the span of a decade.
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However, some funds led the inflow rally from the front, while many erstwhile toppers lost their magic.
Standing out among the schemes, the Parag Parikh Flexi Cap Fund which has showcased consistent outperformance against benchmarks in the last 3-5 years sits on the top of the charts in 2023 as well.
Securing the top position for the most substantial inflows in 2023, the scheme garnered ₹11,400 crore, marking an 18% year-on-year (YoY) surge from net inflows of ₹9,600 crore in 2022.
The scheme's success is underscored by its average returns of over 38% in the past year.
Joining the investment elite, SBI Contra Fund attracted net flow of ₹9,000 crore, while Quant Small Cap Fund received a cash injection of ₹7,000 crore.
Nippon Small Cap came close to securing a podium finish with ₹6,600 crore, and SBI Large and Mid Cap Fund claimed the 5th spot with net inflows of ₹6,300 crore.
Noteworthy is the inclusion of two actively managed small-cap funds in the top 5, highlighting the rise of Quant Mutual Fund schemes on the popularity ladder.
Here’s a look at the five schemes that got the highest inflows in 2023:
| 5 most popular equity funds of 2023 | Net flows |
| Parag Parikh Flexi Cap Fund | ₹11,400 crore |
| SBI Contra Fund | ₹9,000 crore |
| Quant Small Cap Fund | ₹7,000 crore |
| Niopon India Small Cap Fund | ₹6,600 crore |
| SBI Large & Midcap Fund | ₹6,300 crore |
(Source: Value Research)
Quant Mutual Fund schemes witnessed rise, recently reaching a total AUM of ₹50 thousand crore. Despite being a relatively young fund house known for high-churn and rule-based portfolios, Quant has made a significant mark in the industry.
The last few years saw schemes from the fund house topping the return charts across categories.
However, the year wasn't favorable for all.
Axis Mutual Fund continued to be battered by the issue’s cropped up after the front-running saga unfolded leading to legal battles. Even a bull market couldn’t help Axis schemes this year as three Axis schemes found themselves among the five funds experiencing the maximum outflows in 2023.
Axis Bluechip Fund, Axis ELSS Tax Saver Fund, and Axis Focused 25 Fund faced significant outflows.
Topping the list of laggards was SBI Nifty 50 ETF, witnessing outflows totaling ₹11,200 crore.
Industry experts suggest that 2023 favored active funds over passive ones, a trend evident in the inflow charts.
| The bottom 10 funds | Net flows |
| SBI Nifty 50 ETF | ₹11,200 crore |
| Axis Bluechip | ₹7,400 crore |
| Axis Focused 25 | ₹4,600 crore |
| UTI Flexi Cap | ₹3,100 crore |
| Axis ELSS Tax Saver | ₹2,600 crore |
(Source: Value research)
In conclusion, while some mutual fund schemes continued to shine with a Midas touch in 2023, others lost their magic.
(Edited by : Anshul)
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