Jul 17, 2018 3 min read

43% Rise In Mutual Funds Inflow In Q1: Are You Following The Rewarding Trend?

Know why mutual funds are gaining the trust of the investors as the inflow achieves new height.
The “Mutual Funds Sahi Hai” campaign has proven out to be helpful for the awareness of mutual funds in India. AMFI has been successful in attracting the retail investors in significant amount by the June-end Q1 FY2019. Still dicey regarding mutual fund investments? The facts and figures might help you to decide for yourself!

With the globalization amplifying the methodologies and technologies of various industries, modern strategies of investment have also been adopted by numerous investors. Mutual funds have been chosen as the primary investment method for different financial goals including tax savings, retirement planning, child future planning, wealth creation, or any personal financial goals. In recent months, the investments in mutual funds have been dramatically increased as the awareness campaign of mutual funds has delivered expected outputs.

Rs 1.4 lakh crores has been added to the mutual fund industry for the April-June quarter of the fiscal year 2019. Association of Mutual Funds of India (AMFI) released the data at the end of the quarter which proves that investors are opting for the optimum financial solution for every need, as the awareness about mutual funds is on the rise. After knowing about the benefits of mutual funds over other investment strategies, people are switching to smarter, comfortable, and more straightforward means of investment.

All the 19 AMCs associated with MySIPonline, batting on the pitch of mutual fund industry have been hitting hard and scoring fast as the MF industry has relished a 20% gain from the June end quarter of FY2018. The asset base of Rs 20.40 lakh crores in Q1FY2018 has been refurbished to Rs 23.40 lakh crores at the end of Q1FY2019. The inflow has soared by 43% from that of the last year due to the significant participation of retail investors in small cities.

The SIP Factor

The primary reason behind the exponential increase in the inflow of mutual funds is the periodic investment option called as Systematic Investment Plan (SIP). Due to its pocket-friendliness and multiple benefits, SIPs have contributed actively in this remarkable growth with the overall monthly investment of Rs 7,300 crores. According to the Chief Executive of AMFI, Mr. N.S. Venkatesh, SIP has attracted many investors, and due to its multiple benefits, this trend will continue to rise in the upcoming years as well.

Despite the volatility in the equity market in 2018 and the introduction of LTCG, investors are seeing the long-term prospect of mutual funds and are more focused on the SIP investments. Debt, as well as equity schemes, have contributed to this record-breaking inflow of investments in mutual funds but debt funds have attracted the majority of investors. Rs 33,000 crore has been gathered by equity schemes and more than Rs 90,000 crore by debt schemes.

In prosperous countries like the USA, mutual funds’ assets under management are over $18.7 trillion or Rs 126 lakh crores. India lags far behind many countries at Rs 23.4 lakh crores but is rapidly growing at a fast pace. According to the experts, India can achieve the milestone of Rs 100 lakh crores by 2025. Millions of Indian investors have achieved their financial goals with mutual funds and its high time for every Indian to achieve financial stability and to strengthen the economic roots of the country. Know, that you are not alone in this intricacy, our team of financial experts are always available for you to help you make the most out of your investments and achieve your financial goals effortlessly.

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