Mutual fund investment through systematic investment plans (SIPs) has surged to an all-time high of Rs 3.34 lakh crore in 2025, driven by growing investor appetite for disciplined, long-term wealth creation.
'Long-term investors seeking sustainable gains from resilient, fundamentally strong companies may go for these funds.'
The post-Covid euphoria surrounding direct equity investing has ebbed in 2025. Individual investors have turned net sellers in the domestic equity market, pulling out about 8,461 crore so far this year - a sharp reversal from the record purchases seen in 2024, according to a report by the National Stock Exchange of India (NSE).
'...a mix of asset classes.' 'Include equities for growth (across market caps), debt for stability and liquidity, gold as a hedge against macro and currency risk, and global assets for geographical and economic diversification.'
This exercise allows investors to realign their portfolios with changing market conditions and evolving personal objectives.
Sectoral funds, focused exclusively on public sector banks (PSBs), have delivered the strongest returns among domestic mutual fund (MF) categories over the past six months. However, active banking funds have significantly lagged because of their heavy tilt towards private lenders.
The competitive intensity in the mutual fund (MF) industry is moving beyond scheme performance, cost structures, and distribution. In recent months, several fund houses have rationalised exit loads applicable on redemptions.
Passive funds appeal to investors seeking to avoid the risk of underperformance by the fund manager and minimise the need for frequent chopping and changing of funds.
In a live chat on rediff.com on Wednesday, July 16, 4 pm, Feroze Azeez, will offer some valuable suggestions on investments.
In a chat on rediff.com, Feroze Azeez offered valuable tips.
A chat with investment expert Feroze Azeez on what impact will the hike in RBI rate have on the consumers.
'One should not invest more than 5 to 10 per cent of their overall portfolio exposure in global or international funds.'
Value mutual funds have witnessed robust investor interest, garnering Rs 22,757 crore in inflows in 2024, nearly double the amount seen in 2023, fueled by impressive returns generated by the segment. This surge reflects a shift in investor focus towards fundamentally strong yet undervalued stocks.
Redemptions from systematic investment plan (SIP) accounts scaled a new high of Rs 14,367 crore in July, indicating investors booked profits following back-to-back months of gains in the market. Volatility triggered by Budget announcements also played on investor sentiment. "July 2024 saw a peak in the Nifty, which may have prompted profit-booking among investors nearing the end of their goal tenure.
Mid-cap and small-cap mutual fund schemes have continued to attract strong investor interest, garnering nearly Rs 30,350 crore in inflows during the April-September period of the current financial year, driven by impressive returns delivered by these segments. In comparison, the cumulative inflow into mid-cap and small-cap funds stood at Rs 32,924 crore during the same period last year, according to data from the Association of Mutual Funds in India (Amfi).
After a robust 2023, foreign investors significantly scaled back their investments in Indian equities in 2024, with net inflows amounting to over Rs 5,000 crore, as elevated domestic valuations, coupled with geopolitical uncertainties prompted investors to adopt a more cautious stance. Looking ahead to 2025, FPI flows into Indian equities could see a recovery, supported by a cyclical upswing in corporate earnings, particularly in domestic-oriented sectors like capital goods, manufacturing, and infrastructure, Vinit Bolinjkar, head of research, Ventura Securities, said.
Passive funds tracking the National Stock Exchange Nifty Next 50 Index have seen their assets under management (AUM) more than double in the past year. The index's growing popularity can be attributed to its robust 50 per cent return over the same period. Currently, the AUM of funds tracking the Nifty Next 50 index stands at nearly Rs 30,000 crore.
Inflows into gold exchange-traded funds (ETFs), which manage a total of Rs 37,390 crore, have surged sharply in recent months. This trend is likely to continue, especially after the reintroduction of long-term capital gains tax (LTCG), which is likely to attract smart money into mutual fund offerings amid a robust outlook for the yellow metal. Smart money, also known as opportunistic flows, refers to strategic investments that are generally of a short-term horizon.
'Indian investors have always been debt-heavy but with growing financial awareness they are getting comfortable with equities.'
In a live chat on rediff.com on Wednesday, July 16, 4 pm, Feroze Azeez, will offer some valuable suggestions on investments.
If you lack an emergency fund or it is depleted, use part of your bonus to build or replenish it.
Feroze Azeez, director -- investment products (private wealth management), Anand Rathi Financial Services Ltd -- answer our readers' questions on financial planning during an hour-long chat on Tuesday.
.jpg)
Live chat on Wednesday, March 12, at 4 pm with investment expert Feroze Azeez.
To get some useful investment tips, chat with Feroze Azeez, director -- investment products (private wealth management), Anand Rathi Financial Services Ltd on Wednesday, April 2 between 4 pm and 5 pm.
'Those satisfied with returns and not expecting further rally could be booking profits and also stopping SIPs.'
Mutual funds focused on small-caps have emerged as the winner with a net inflow of close to Rs 11,000 crore in April-June quarter, as fund managers struggle to create alpha in the large-cap space, and the trend is expected to continue for some time. On the other hand, large-cap space, which is yet to pick up momentum, witnessed an outflow of Rs 3,360 crore during the quarter under review, data from the Association of Mutual Funds in India (Amfi) showed. Apart from the June quarter, small-cap funds logged an inflow of Rs 6,932 crore in three months that ended in March.
To shed more light on how GST will affect the individual as well as the nation, Rediff Chat has lined up experts to field your queries.
The froth in the small and midcap (SMID) space is limited to a few pockets, but regulatory scrutiny could lead to sustained volatility, observe India's top-drawer wealth managers. They add that they have been advising clients to reduce their exposure to smallcaps. Anand Rathi Wealth, which manages investor wealth through mutual funds (MFs), reports that its exposure to smallcap stocks, both through MFs and directly, has decreased by nearly 7 percentage points in the past few months, now standing at 23 per cent.
The bulk of an investor's portfolio should be in shorter-duration funds of up to one year portfolio duration.
Feroze Azeez, deputy chief executive officer of Anand Rathi Private Wealth Management, appeared on Rediff Chat to answer readers' queries on GST.
Lock into these long-term bonds for higher interest rates and capital appreciation
These stocks are overvalued and, therefore, one should not adopt a buy and hold strategy.
After every corporate announcement, check your demat and bank accounts for necessary credits.
Secondary market might be a better bet for investors
While such buying could indicate confidence in the business, investors should do a comprehensive evaluation before getting into the stock.
Getting locked into instruments before the new regime kicks in would be a good strategy.
If the view is that rupee will depreciate, hedge your exposure by using forward cover
Gilt funds make sense only if you want to take a tactical view on interest rates and are looking for a short-term duration.
In a growth market, these funds should not form more than 10-15% of your portfolio. Invest with a horizon of at least 5 years
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances