The Rise And Rise Of Retail MF Investors

The Rise And Rise Of Retail MF Investors Mutual fund investors who had invested at the start of the year in equity schemes might be seeing red in their portfolio. Barring a couple of sectoral funds and large-cap dedicated funds, all categories of funds have given negative returns in the last three months to six months. More importantly, these funds have underperformed their benchmark indices. Despite such a lacklustre performance, the latest data from AMFI shows that monthly collections through the mutual fund systematic investment plans (SIPs) in June this year rose by Rs 250 crore over the month of May to touch a record high of Rs 7,554 crore. We have been witnessing a consistent rise in investment through SIPs in the last couple of years. It has increased from average of Rs 3,122 crore at the start of FY17. The bad performance by other asset classes such as gold and real estate may be one of the reasons for the investors' tilt towards MFs. Nevertheless, the pro-investor steps taken by the market regulator SEBI and the right communication by the industry body AMFI may have also helped.

In the foreseeable future, we do not see any change in the trend and equity MFs will remain one of best asset classes to remain invested in for the retail investors. The markets will remain volatile for different reasons; however, such volatility always creates pockets of opportunities. Our cover story of this issue explains in detail why you should remain invested and where the best opportunities lie.

The opportunities in the MF space are not limited to equity only, and investors can wisely use debt MFs to complement their equity portfolios. We have done a special report on how to select the right debt fund for your portfolio. In addition to this, we have also done a path-breaking special report on investing in equity MFs by doing a technical analysis of the funds.

Hope these reports will help you take wise investment decisions.

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