Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Will uptrend in mutual funds continue?
Fri, 5 Jul Pre-Open

The mutual fund industry is continuing to have an impressive year. After witnessing a robust growth in the month of May, the mutual fund asset base continued to rise in the following month. And the trend did not stop there. The average assets under management (AUM) of the mutual fund industry moved up 3.68% to touch a new high of about Rs 847 bn in April-June. This is the increase for the fifth consecutive quarter.

But before you start thinking that investors have started flocking back to the stock markets, let us tell you that the momentum in the mutual fund industry has been primarily led by the debt oriented fund categories. And this month was no different.

What continues to be a cause of concern is the ever declining equity asset base. With the looming uncertainties in the domestic as well as global economy, investors have assumed a very cautious approach. As a result the overall share of the equity base in the overall mutual fund AUM has declined substantially over the past few months. It was only in the month of March that the category witnessed inflows post which it went back to a declining spree. The average AUM of equity mutual funds fell for the sixth consecutive quarter.

Gold prices globally continued to remain under pressure. Investors continue to remain wary of investing in what was once their favourite investment avenue.

Over the medium term, it seems that debt funds will still continue to attract the majority of flows owing to the favourable interest rate cycle. Investors are likely to continue to capitalize on downward changes in interest rates. Hence, going forward also one can expect more inflows into Gilt, dynamic and income funds.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Will uptrend in mutual funds continue?". Click here!


Views on News

Two Meetings That Nailed the Idea of Owning Brilliant Smallcaps Without Buying Them (The 5 Minute Wrapup)

Mar 22, 2018

Certain blue chips hold the potential of delivering returns comparable to small-cap stocks. With these stocks, you can get the best of both worlds.

Our Next Stock Recommendation Has Scored 9.5/10 (The 5 Minute Wrapup)

Feb 20, 2019

This month's Smart Money Secrets recommendation is a rare high-quality company which is now available at attractive valuations.

This is Exactly Where You Will Find Bargain Stocks Today... (Profit Hunter)

Feb 20, 2019

Mouth-watering opportunities have been uncovered these stocks that are selling at bargain valuations thus making them poised to generate a lot of wealth in the years to come...

Worthy Mutual Funds To Decide Your Investment Success In 2019 (Outside View)

Feb 19, 2019

in 2019, you should invest in mutual fund schemes offered by the fund houses that can have a proven track record under bear market phases.

Should You Park Your Savings In 'Invesco India Equity Savings Fund'? (Outside View)

Feb 19, 2019

Personalfn highlights investment objective, investment strategy, asset allocation of the Invesco India Equity Savings fund and its outlook.

More Views on News

Most Popular

The RCom Bankruptcy: 5 Lessons for Smallcap Investors(Profit Hunter)

Feb 7, 2019

Managements of companies can create or ruin their fortunes. Why is management quality such an important factor in valuing businesses? Read on to find out...

The One Real Estate Stock to Buy Now(The 5 Minute Wrapup)

Feb 13, 2019

The real estate sector is ready to make a comeback. This is the stock to consider buying.

How We Pick the Most Profitable Stocks from the Portfolios of Super Investors(The 5 Minute Wrapup)

Feb 8, 2019

This is the trick to following super investors and not losing money.

Small Caps Under Seige: Could This Be A Once-in-a-Decade Wealth Creating Opportunity?(Profit Hunter)

Feb 14, 2019

Don't let the dark clouds hovering over small caps scare you into hiding; it will rain gold as sentiments recover. Indeed, there is a blood bath. And if you are a first time investor, the correction is deep enough to scare you out of markets.

Don't Be Afraid of the Market; Buy Stocks Like This One(The 5 Minute Wrapup)

Feb 14, 2019

During this tough period in the market, a contrarian approach holds huge potential upside for this Smart Money Secrets stock.


Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms


Feb 20, 2019 12:59 PM