An improved showing of mutual funds (MFs) is helping the industry attract distribution talent at a brisk pace. The industry has onboarded a net of 11,600 individual distributors in the first seven months of 2023-24 (FY24) compared to just 5,555 distributors in the whole of 2022-23 (FY23), according to data from the Association of Mutual Funds in India. Like most financial products, MFs also have significant reliance on individual distributors to sell their products, even as digital platforms are gaining popularity.
While few would dispute the utility that an SIP can offer, there is a flipside to the same as well. In this article, we discuss the pros and cons of SIP investing.
After pulling out $17 billion in calendar year 2022, foreign portfolio investors (FPIs) have pumped $7.3 billion back into equity markets so far this year. The turnaround in foreign flows has helped domestic markets exceed the all-time highs chalked up in December 2022 and bounced back more than 10 per cent from this year's lows. However, a big nugget of FPI inflows seen this year could be off the back of two factors: exchange-traded funds (ETFs) and block deals.
rediffGURU Ulhas Joshi answers your mutual fund queries.
The mutual fund industry's assets under management (AUM) have likely breached the Rs 50 trillion mark following a rally in domestic equities this month. The industry's average AUM stood at almost Rs 48 trillion at the end of October. In November, the Nifty50 index has gained about 4 per cent so far, while smallcap and midcap indices have rallied close to 8 per cent.
Those who cannot bear significant downturns (as much as 40 per cent) or have a short horizon should exit entirely.
The SIP is simply an investment mode i.e. a means to invest in mutual funds and not an investment avenue.
'Those satisfied with returns and not expecting further rally could be booking profits and also stopping SIPs.'
Investing in mutual funds regularly can give you great returns. It can even make you a millionaire.
Literally new to the market, VIP is available only with Benchmark MF.
Why should I invest in mutual funds? Why cannot I invest in equities directly? Here are 7 simple reasons
Pru Dynamic, Reliance Diversified Power Sector Fund, Pru Services Sector Fund/ Infrastructure Fund, Templeton Prima or Reliance Growth Fund can give you high returns in the next 3-5 years feels mutual fund expert T Srikanth Bhagavat.
SIP (Systematic Investment Plan) is one of the most effective ways of investing in equity markets. In SIP, you invest a certain amount each month into the equity mutual fund of your choice. This amount can be as low as Rs 100.
The fund house has proposed the government allow those investing up to a specified amount, to contribute on a monthly basis without submitting PAN, which is a must for all mutual fund investments. SBI MF is hoping to get around 250,000 investors to invest in 'Chota SIP.' The product aimed at the lower income group, the subscription level could rise to 1 million if the PAN requirement was done away with.
For the first time in a decade, inflows into equity mutual funds (MFs) decoupled from the past performance of the equity market, as investors continued to pour money into the market unperturbed by lacklustre returns.
Which are the best mutual funds to buy now? What should be your strategy now while buying mutual funds? Should you buy open-ended or close-ended funds?
Mutual funds (MFs) invested a record Rs 1.73 trillion in equities in the financial year 2022-23 (FY23), providing strong support to the Indian markets at a time when foreign investors were redeeming their holdings. They exceeded the previous high of nearly Rs 1.72 trillion investment in equities in FY22. The data from the Securities and Exchange Board of India (Sebi) shows MFs were net buyers in the equity market in eleven of the twelve months last financial year.
SIPs can give better returns in a volatile market because they gather more units over time, says Arnav Pandya.
Mutual funds' equity buying remained elevated for the fifth consecutive month in December, taking the net equity purchase past Rs 1.7 trillion in 2023. The aggressive buying in December indicates that flows into equity funds are likely to have remained unaffected by the sharp run-up in the market last month. Mutual funds (MFs) bought equities worth Rs 23,000 crore last month (until December 28) compared to Rs 18,000 crore in November, shows data from the Securities and Exchange Board of India (Sebi).
One can equate SIPs to the recurring deposit.
The law of demand clearly states that at higher prices demand is less and vice versa. The retail investor investing in the stock market doesn't quite follow that logic.
Which are the best systematic investment plans for saving tax? Which are the best mutual funds to buy now? How should you plan your taxes and dervive optimum returns from them? Should you buy a house, go for a loan in the current economic situation?
Artificial Intelligence, innovation and next-generation technologies figured prominently during the high-stakes discussion between Prime Minister Narendra Modi and US President Donald Trump at the White House, as the two sides announced transformative measures, including the US-India TRUST initiative, roadmap on accelerating AI infrastructure and INDUS Innovation, to boost tech ties.
Equity benchmark Sensex declined nearly 390 points on Friday, pressured by heavy selling in IT, tech and energy stocks despite a positive trend in the global markets. Besides, rising crude oil prices and relentless foreign capital outflows further weighed on sentiment, traders said. The 30-share BSE Sensex opened strong but came under severe selling pressure to close 389.01 points or 0.62 per cent lower at 62,181.67.
Are you a first time investor? Do you have low risk taking capacity? If yes, then mutual fund SIPs are the best option for you believes mutual fund expert T Srikanth Bhagavat.
'Investors should plan and make investments strictly on the basis of their risk profile.' 'They should not bite more than they can chew.'
A series that will help you clarify financial jargon and empower you to make your own financial decisions.
You have to apply for a recurring deposit account and ask the bank to deduct the stipulated amount from your savings or current account every month.
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 199 crore in January, making it the third monthly withdrawal in a row, with investors preferring equities over other segments on buoyant record SIP flow. This was in comparison to a net outflow of Rs 273 crore registered in the segment in December and Rs 195 crore in November. Prior to that, Gold ETFs attracted Rs 147 crore in October, data with Association of Mutual Funds in India (Amfi) showed.
When the NAV falls, you are going to get more units of the fund. That means when the market turns around, you will get much more returns
A Daily SIP collects a small sum from an individual on a daily basis and invests it in the market. It operates like any mutual fund, where the disbursement and handling of the money is the fund manager's prerogative.
rediffGURU Hemant Bokil answers your personal finance queries
The Pay Commission's award will provide a windfall that can be used to both spend and invest wisely.
Diamond prices vary purely on demand and supply. You can make extraordinary returns within six months or it can even take years.
Sanjay Kumar Singh suggests key factors investors need to keep an eye on while choosing the direct investment route.
For building long-term wealth, financial planners always advise that the systematic investment plans (SIPs) in equity funds is the best way.
SIPs need to be promoted by the investment agent/distributor community after explaining all the merits and demerits to the investor so as to enable him to take an informed decision.
Bundled products often come with restrictions. The customer also gets locked into two products at the same time. This reduces flexibility.
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