New Delhi: Despite concerns about unreasonable valuations, investors have continued to express confidence in professionally-managed Mutual Funds. According to data released by the Association of Mutual Funds in India (AMFI), equity funds witnessing a 21% month-on-month rise in net inflows. After months of slowing growth, net equity fund inflows have risen to ₹29,911 crore in November from ₹24,690 crore witnessed in October.
Amongst the 11 sub-categories of Mutual Funds, Flexi cap funds recieved the highest inflow of ₹8,135 crore, while Dividend and ELSS funds witnessed net outflows. Despite the risks, small-cap funds saw inflows of ₹4,407 crores, a 26.8% rise from October, while Midcap funds rose ₹4,487 crores, increasing 17.9% from the same period.
Over the years, increased awareness about long-term investments has helped boost inflows in Mutual Funds, both through lump sum and SIP modes. Despite the challenges of unrealistic promises and vested interests of some finfluencers, new investors across the country are investing through the Mutual Fund route, especially for long-term appreciation.
Inflows in Mutual Funds have been muted from October, falling from ₹30,422 crore in September to ₹24,691 crore in October, despite the Nifty and Sensex gaining almost 4% during that period.
The Mutual Fund industry has been growing steadily over the years, even as novice investors continue to trust the reputation of Funds that have delivered strong returns. Despite the AMFI crying foul about the SEBI’s proposal for lowering costs associated with Mutual Funds, the expectations of continued returns have helped the sector expand immensely. Many now see Mutual Funds as a core part of their retirement corpus, with the provident fund contributions remaining inadequate for most.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
