Net flows
When a fund's net assets rise, two forces combine: portfolio performance and money coming in or going out.
The change in a fund's net assets over a period breaks down into two terms.
Market effect
The part of the change that comes from the performance of the securities held. If the NAV rises 2 %, net assets rise 2 % with zero net flows.
Net flows
The part that comes from capital movements: subscriptions minus redemptions. Positive flows signal that the fund is attracting new money; outflows, that investors are leaving, regardless of performance.
Why it is useful
A fund can post good performance and see outflows (investors taking profits), or the reverse. Net flows are a confidence signal and a gauge of the management company's commercial activity. Aggregated by category, they show where the country's savings are going.
An estimate, anchored to official figures
Per-fund flows are not published in Morocco. FondsMaroc estimates them from the change in net assets and NAV performance, then anchors the category and market totals to the AMMC's official figures. The fund-by-fund split therefore remains an estimate.
See flows and net collection →
See also
- Net asset value and net assets
The price of a unit, how it forms and what it tells you.
- Reading fund performance
YTD, 1 / 3 / 5 years, cumulative versus annualised.
- What is a mutual fund (OPCVM)?
SICAV, FCP, net asset value, the role of the AMMC: the basics.