Statistics also reveal that the share of mutual funds in savings is also rising among the retail investors.
The trend of domestic investors, particularly the retail investors, driving the stocks continued even in Samvat 2074. Even as Foreign Institutional Investors (FII) were net sellers on most occasions, the domestic investors pumped funds in the market. Mutual Funds pumped in Rs 1,18,722 crore in equity and Rs 3,60,897 crore in debt in past 12 months. SIPs per month recorded a secular growth during the year. Of the Rs43,921 crore invested in form of SIP during the year, Rs 29,266 crore were infused in past six months.
"SIPs help in cost averaging. It is the most disciplined form of investment and can start with as low as Rs 500. So small investors can also participate in equity growth. One needs to stay put in SIP for at least 8 years to reap real benefits. Of late there is also a trend in investing in liquid funds and then investing lumpsum depending. This investment in MF is in addition to SIPs," said Niyati Bhat, an independent financial planner based out of Ahmedabad.
Statistics also reveal that the share of mutual funds in savings is also rising among the retail investors. While bank deposits grew from Rs86,87,410 crore in September 2014 to Rs 1,14,52,000 crore, a rise of about 32% in three years, the mutual fund investments grew from Rs 9,59,415 crore to almost Rs 21 lakh crore in September 2017, a rise of 118% in three years. "This is an indication that retail investors are diversifying into equity from debt through mutual funds. While returns in FD has dropped from 8% to 6.25%, large cap MF yielded 16% returns, mid cap funds gave 20% returns and small cap funds gave 24% returns," informed Madhur Todi, MD of Ahmedabad-based Meramoney Advisors Pvt Ltd. Benchmark Sensex has yilded 16.88% returns.
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