Equity Mutual Funds: Investors are moving towards Systematic Investment Plan (SIP) to invest in the market at this time. SIP has become a special choice of investors because of the low returns over traditional investment options. Because of this, equity mutual funds have become the center of attraction for investors. A large number of investors are turning to this plan.
Amfi released figures
Let us tell you that in the last financial year 2021-22, there has been a net investment of Rs 1.64 lakh crore in equity-linked funds. This information has been received from the data of Association of Mutual Funds in India (Amfi).
Withdrawal was done in 2020-21
Earlier in 2020-21, investors had withdrawn Rs 25,966 crore from equity mutual funds. Manish Kothari, Chief Executive Officer (CEO) and Founder, ZFunds said, “Going forward, we expect equity mutual fund investments to continue to flow in view of the prevailing economic and market conditions.”
28,464 crore investment came last month
According to the data, there has been a net inflow of Rs 1,64,399 crore into equity mutual funds in the entire 2021-22. This also includes a record investment of Rs 28,464 crore that came last month.
Geopolitical tensions due to the Russia-Ukraine war and concerns over rising crude prices led to a ‘correction’ in the markets in late February and early March. This gave investors a good buying opportunity, which they did not miss to capitalize. Equity mutual fund assets grew 38 per cent to Rs 13.65 lakh crore by the end of March this year on strong inflows.
Know what is the opinion of experts?
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India said, “The long-term growth outlook remains strong despite concerns, which has acted to keep investor sentiment positive. 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 the opportunity to invest when the market comes down.
Amfi Chief Executive NS Venkatesh said that mutual fund investors have strengthened their returns through disciplined investing in SIPs. Further, the number of folios or investor accounts for equity-linked funds increased to 86 million in March 2022 from 6.64 million in April 2021. In this way, there is an increase of 29 percent in the number of folios. It shows the trust of investors towards mutual fund assets.