Equity mutual funds tend to be volatile in the short-term, but has the potential to give huge returns if an investor continues his sips irrespective of the market volatility. Previously investors gets panic in volatile periods and tend to redeem their mutual fund units in bear phases. But due to investor awareness sessions conducted by amc’s(Asset Management Companies) investors realised the importance of staying invested in volatile times. This was possible through the AMFI(Association of Mutual Funds of India)”Mutual Fund Sahi hai” campaign too which created awareness among the investors very much.
Recently in March 2022, Indian equity markets went into deep correction on the eve of “Russia-Ukraine War Tensions”. Infact there is some “Profit-Booking” from FII’s(Foreign institutional investors)and DII’S(Domestic institutional investors)on the eve of financial year ending factors.
Surprisingly despite there is heavy volatility in equity markets, equity mutual funds bags 28,463 crores of investments in March. Still not trusting? It’s the official data from AMFI(Association of Mutual Funds in India)on the mutual fund business done in March 2022!
According to AMFI-
- All AMC’s(Mutual Fund Firms) AUM(Assets under Management) has crossed 37.7 lakh crores
- All AMC’s sip contributions have hiked to 12,328 crores
- From the safety point of view large cap funds are treated as safer bets in volatile times. All AMC’s large cap, large & midcap funds(with slighter volatilty)business has seen a hike of more than 3000 crores
- All AMC’s Multicap business has grown to 9,695 crores
- Along with this 15 index funds and 5 ETF’s(Exchange Traded Funds) were launched in March 2022 and it’s business has grown to 3,691 crores
Overall slowly investors are realising the importance of staying invested in equity funds. Infact by not taking hasty decisions in volatile times they are benefitting from the low valuations in the market corrections.
If investors stayed invested in bear markets in future too, both investors and amc’s business networth would reach new sky-highs in the coming future! Hope this would happen in the coming future!