Have you invested in mutual funds yet? Here is what will make you rush to do so
Systematic investment plans (SIP) have also given the investors a choice as well as flexibility of investing periodically or in lump sum as per their preference, Harsh Jain, COO at Groww told PTI. Groww is an online platform which sells financial products including mutual funds.
Stock market investment is no longer an elite affair as increasing investments in mutual funds show no signs of abating despite the wobbly Dalal Street rise. Latest data available with Association of Mutual Funds in India (Amfi) showed that mutual fund investments have surged 9 per cent in April as investors pumped in Rs 1.4 lakh crore last month, driving the industry asset base to a staggering Rs 23.25 lakh crore. The trend has been cemented and those who have not invested in MFs should definitely eye the option favourably or they may miss the bus going fiorward.
The assets under management (AUM) of the MF industry, comprising 42 players, stood at Rs 21.36 lakh crore in March, according to Amfi data. An 'aggressive' investor awareness campaign both at the individual as well as at industry level is pushing the surge in AUM base, say experts.
Investors are moving towards financial asset class for investment purposes to log financial gain instead of buying traditional asset classes such as real estate and gold, which also helped in increasing the penetration of mutual funds, they added.
Moreover, systematic investment plans (SIP) have also given the investors a choice as well as flexibility of investing periodically or in lump sum as per their preference, Harsh Jain, COO at Groww told PTI. Groww is an online platform which sells financial products including mutual funds.
Overall, investors have poured in a net Rs 1.4 lakh crore in mutual fund schemes last month as compared to redemptions of Rs 50,752 crore in March due to new tax on long-term equity gains.
The latest inflow has been mainly driven by contributions from liquid or money market category and equity funds.
The liquid funds or money market category -- with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon -- witnessed an infusion of over Rs 1.16 lakh crore.
Besides, equity and equity-linked saving schemes (ELSS) saw an inflow of more than Rs 11,000 crore. Further, income funds which invest in a combination of government securities witnessed an infusion of Rs 5,220 crore.
In contrast, a net sum of Rs 436 crore and Rs 54 crore was pulled out from gilt and gold exchange traded fund (ETF) respectively.
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