Fund Flow

calender iconUpdated on June 29, 2023
fund trading
trading

Table of Contentstable of content icon

Fund Flow

Fund flow is a measure of the net movement of money into or out of a fund over a particular period of time. It is calculated by subtracting the fund’s cash inflows from its cash outflows during the period.

Components of Fund Flow:

  • Cash inflows: Amounts of money received by the fund from investors through purchases of fund units or subscriptions.
  • Cash outflows: Amounts of money paid by the fund to investors for redemptions of fund units or dividends.

Types of Fund Flow:

  • Net inflow: When cash inflows exceed cash outflows.
  • Net outflow: When cash outflows exceed cash inflows.
  • Net change in assets: The change in the fund’s assets over time, which is equal to its net flow plus any other changes in asset value.

Importance of Fund Flow:

  • Track performance: Fund flow can be used to track a fund’s performance by analyzing the relationship between flow and returns.
  • ** gauge investor sentiment:** Fund flow can provide insights into investor sentiment and market conditions.
  • predict future performance: Fund flow can be used to predict future performance by analyzing trends and patterns.
  • manage risk: Fund flow can be used to manage risk by identifying potential liquidity problems or flows that may impact performance.

Example:

If a fund receives $100,000 in cash inflows and pays out $50,000 in cash outflows during a particular quarter, its net flow for that quarter would be $50,000.

Formula for Fund Flow:

Fund Flow = Cash Inflows - Cash Outflows

Key Points:

  • Fund flow is a measure of net movement of money into or out of a fund.
  • Components of fund flow include cash inflows and cash outflows.
  • There are three types of fund flow: net inflow, net outflow, and net change in assets.
  • Fund flow can be used to track performance, gauge investor sentiment, predict future performance, and manage risk.

Categories

Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548):

The SEBI Registration No. allotted to us is INZ000313732.
NSE Member Code: 90326| BSE Member Code: 6808| MCX Member Code: 57120
DP CDSL: 12099800

Compliance Officer : Mr. Randhir Kumar Chaudhari
Tel no: 011- 49022222 / 011-49022277
Email: randhir@pocketful.in

Registered Address/Correspondence Address: C- 3, Ground Floor, Okhla Industrial Area, Phase - 1, New Delhi - 110020

For any complaints, drop us an email atlegal@pocketful.in

Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID.

Smart Online Dispute Resolution|Link To Circular|Procedures and Policies|Broker Investor Charter|DP Investor Charter

Benefits: Effective Communication, Speedy redressal of the grievances.

Benefits: Effective Communication, Speedy redressal of the grievances.

Please ensure you carefully read the Risk Disclosure Document as prescribed by SEBI and our Terms of Use and Privacy Policy.
The brand name Pocketful and logo is in process of trademarks registration. The cost-effective brokerage plans make Pocketful a trustworthy and reliable online stock broker. Available on both the web and mobile, it offers unmatched convenience to traders. If you are considering opening......

Read More