Indian markets have moved higher, pushing the benchmark Sensex above 60,000 and Nifty near 18,000 from March lows last year. Meanwhile, equity mutual funds Record inflows have also been witnessed amid the current bull market rally.
The recent inflows into equity mutual funds have pushed the assets under management (AUM) of the mutual fund industry to an all-time high. ₹36.6 lakh crore at the end of August ₹35.32 lakh crore at the end of July. The systematic investment scheme (SIP), popular among retail investors for allowing regular investment of a fixed amount in the schemes, also reached an all-time high. ₹9,923.15 crore during the period under review from ₹9,609 crore in July.
Kotak Mahindra Asset Management Company (AMC) Nilesh Shah recently shared how investors who stayed invested even after seeing negative returns over the past few years were rewarded with double digit returns through this bull run.
“The most important thing is the ordeal of SIP investors in March 2020. SIP returns were negative for three years, low single digit for 5-7 years and mid single digit for 7-10 years. Today’s double digit returns are available only to those who remained invested,” Shah tweeted.
Several equity mutual funds have delivered stellar returns over the past year as the Indian markets continue to rally. Also, new investors participated enthusiastically with record new SIP accounts and Demat accounts getting registered in the last few months.
Edelweiss AMC CEO Radhika Gupta also explained in a recent tweet what it means to invest in MFs to beat inflation in recent years. “The family member had invested in a property 9 years back in NCR. With great struggle, will finally come out with 2% IRR. Now wondering, “What if I had invested in MFs?” Radhika tweeted, “Equities may be volatile in the short term, but remain on track to beat inflation.”
“The other challenge with real estate investing is” What is value? In this case he believed the value was X for years but never realized that price. What they realized was 10% less. The cool things about navs are they’re executable!, he added.
The benchmark Sensex stock index recorded its fastest 10,000-point run to cross the 60,000-level on Friday, beating regional peers. It took just 166 sessions for the Sensex to achieve its latest 10,000 mark, as compared to 414 sessions covering the previous 10,000.
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