Mutual Fund: Experts say that amidst the current economic and market conditions, further investment in equity mutual funds is expected to increase.
Equity Mutual Fund: Investors are investing heavily in equity mutual funds due to low returns over traditional investment options and increasing trend towards Systematic Investment Plan (SIP). In the last financial year 2021-22, there has been a net investment of Rs 1.64 lakh crore in equity-oriented funds. This information has been received from the data of Association of Mutual Funds in India (Amfi). Earlier in 2020-21, investors had withdrawn Rs 25,966 crore from equity mutual funds.
Geo-political tensions due to the Russo-Ukraine war and concerns over rising crude prices saw a ‘correction’ in the market in late February and early March. This gave investors a good opportunity to invest money, which they did not miss to capitalize. Due to this, the asset base of equity mutual funds grew by 38 per cent to Rs 13.65 lakh crore by the end of March this year.
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Experts expect further increase in investment
Manish Kothari, CEO and Co-Founder, ZFunds said, “Going forward, we expect investment in equity mutual funds to increase amidst the current economic and market conditions.” According to the data, 1,64,399 equity mutual funds in 2021-22. crore has been netted. This also includes a record investment of Rs 28,464 crore in the previous month.
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said, “Despite concerns, the long-term growth outlook remains strong, which has served to maintain positive sentiments among investors. Apart from this, there is also an assumption that the market will continue to move upwards despite occasional ‘corrections’. In such a situation, investors are not missing out on investing as soon as the market comes down.
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Amfi Chief Executive NS Venkatesh said that mutual fund investors have strengthened their returns through SIPs. Further, the number of folios or investor accounts in equity-oriented funds increased to 86 million in March 2022 from 6.64 million in April 2021. In this way the number of folios has increased by 29 percent. This shows the trust of investors towards mutual funds.
(Input-PTI)