Mutual Fund industry has seen rapid growth in the recent years. Due to the investor awareness campaigns by AMFI(Association of Mutual Funds of India)and media houses, it’s AUM(Assets Under Management)has hit fresh record highs in August 2021.
As markets are at all time highs and prevailing sentiment of market fall due to peak valuations, investors are preferring SIP’s(Systematic Investment Plans)over Lumpsum investments.
According to statistics released by AMFI(Association of Mutual Funds in India), MF business has rise to-
- Funds AUM has reached to 36.6 Lakh Crores rupees which was earlier 35.32 Lakh Crore Rupees in July,2021
- Investors have invested 6,863 Crore rupees in the NFO’s(New Fund Offers)
- Investors have withdrawn 163 Crore rupees from ELSS, Large Cap, Small Cap and Multicap Funds in August 2021 so far
- SIP(Systematic Investment Plans) have raised to 4.32 Crore Folios from earlier 4.17 Crores in July
- SIP flows fetches to 9,923 crores in august 2021
- Out of the sip flows,
- Focused Funds attracts 3,073 Crore rupees investments
- Flexi-cap funds attracts 4,741 Crore rupees which is higher of all the sip inflows
- In Hybrid Funds investors invested 18,706 crores
- Gold ETF’s attract 24 Crore rupees investments
- Total 32,976 crores investments were attracted including debt and liquid fund categories
- While the equity inflows are at huge levels, debt funds slightly declines in august 2021
- According to AMFI, Debt Funds attracts only 1,074 crores in august when compared to 73,964 crores in july
- Investors have withdrawn 11,808 crores from liquid funds in august
- Corporate Bond Funds attracts 3,065 crores while floater funds attracts 9,991 crore investments
It is a welcome note to the economy as the investors are investing in equities(indirectly in shares through mutual fund route)hugely, as it will improve the corporate growth.
But neglecting debt funds is somewhat disppointing as they secure investors wealth in the downturn/recession.
Overall AMFI Data shows that investors are confident on Indian economy, as a result the sip inflows are increasing month-on-month which is a good sign to the economy.