Sep 17, 1999|
Retail investors return to equity schemes
Figures released by the Association of Mutual Funds of India (AMFI), reveal that fresh inflows in equity schemes are on the rise, compared to debt schemes. Investor interest in equity schemes is more pronounced at the retail level.
Rising interest in equity schemes indicates a turnaround in investor perception, since for a long time investors had shied away from putting money in equity products. Instead, they preferred income schemes, which guaranteed safety of principal and stable returns.
Rising number of applications for equity schemes over the past few months, reveals that investors are returning to equities, preferring it to debt. Even in terms of value, investments in equity schemes account for 20% of fresh inflows, compared to 10% last year. Private mutual funds like Birla Sun Life, Prudential ICICI, ING Savings Trust, Alliance Capital, have received more applications from retail investors for equity schemes as compared to last year.
Sources from the MF sector state that the retail interest is due to the rise in market indices. In addition to that, several corporate bodies are investing money in MFs to offset capital gains under Section 54 EA and 54 EB. Tax sops in the last budget for equity schemes have also fuelled demand.
Rising mobilisations by equity schemes will see increased activity in the stock markets. In a developed market, buying and selling of funds has significant impact on the stock prices. So far, this was lacking in the Indian stock markets, where only UTI's buying and selling had any impact on stock prices. However, as private sector MFs post increasing inflows, this will gradually change and private funds will influence stock markets with their buying and selling. Moreover, MFs encouraged by the performance of their equity products will come out with more equity schemes, with innovated features.
More Views on News
Mar 10, 2016
An opportunity to find an impeccably trustworthy and competent financial guardian is in the offing.
Feb 29, 2016
Most financial planners come out as whiz kids who throw around financial jargon. But financial planning can be actually easy, provided one follows a disciplined approach.
Feb 12, 2016
PersonalFN highlights the benefits of parking a portion of your expenses in e-wallets and using them efficiently.
Feb 2, 2016
Mutual funds take a bearish call on the FMCG sector. The sector has started playing out due to a combination of slower growth and expensive valuations.
Feb 1, 2016
Ethical practices help build long lasting relationships, and healthy long-term business relationships are often mutually rewarding. But PersonalFN is of the view that the financial services industry in India seems to have forgotten this.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407