Mutual funds have taken off in a big way in the past few years. The surge started when central banks slashed interest rates during the Covid-19 pandemic, making investors chasing high returns turn to capital markets, either investing directly or via mutual funds. Interestingly, this phenomenon has survived the high interest rate phase of the past two years, and more and more investors are investing in equity now.
The latest data from Association of Mutual Funds of India (AMFI), says average assets managed by the Indian mutual fund industry was ₹66.04 lakh crore in August 2024, a 40 per cent jump over August 2023 when it was ₹46.94 lakh crore. Equity-oriented schemes now account for about 60 per cent of the industry assets, up from 52.7 per cent in August 2023.
Between January and August 2024, the total net inflow into equity mutual funds has been around ₹2.48 lakh crore. Just in August, some 64 lakh new systematic investment plans (SIP) were registered and the monthly SIP contribution hit a new high of ₹23,547.34 crore. While August was the 42nd consecutive month of positive equity inflows, one category of funds seems to have attracted a lot of interest this year—sectoral/thematic funds.
Sectoral funds are equity mutual funds that focus on businesses operating within a specific industry, like technology, health care, defence, energy, automobile, or financial services. There are funds that focus on specific themes like consumption, manufacturing, infrastructure or clean energy as well.
Such funds have received around ₹1.03 lakh crore in net inflows between January and August. What is driving this huge interest?
This story is from the September 29, 2024 edition of THE WEEK India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 29, 2024 edition of THE WEEK India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is bridal wear on the wane?
So many guests walked out of Sabyasachi's grand 25th year celebration in Mumbai last weekend, a little confused, even outraged. How can India's most famous bridal wear designer not showcase a single bridal outfit? Guests were underwhelmed, or disappointed, unable to wrap their coiffed heads around the fact that India is changing, and fashion is now more than a lehenga.
The wedding goes slim
So Jeet Adani is to have a 'traditional and simple' wedding sans celebrities or media glare. His father told the press that the auspicious date was finalised during a visit by the Adani family to the Mahakumbh in Prayagraj, where the muhurat was decided in the presence of vedic scholars.
INTO THE MOCHA-VERSE
Did Pantone get it right with its colour of the year 2025?
The art is in the right place
Joining a growing league of India's privately-owned museums is Sarmaya, a modern space that chronicles historic journeys
New words for old feelings
At a recent literary festival in Pune, its curator, the author Manjiri Prabhu, challenged me to prove my love of words by coining a few new ones. Inspired by the English language's habit of borrowing freely from the world's languages, I essayed these:
OIL AND MORE
India cannot be a spectator to what is unravelling in West Asia, say experts
We hope India will support two-state solution and help rebuild Gaza
War-torn Gaza, once home to Yasser Arafat, dreamt of self governance for the Palestinian territories. This time, its people are looking towards the Palestinian Authority to play a bigger role in helping implement the phased Israel-Hamas ceasefire, rebuilding territory and uniting Palestinians.
BACK TO BROMANCE
India's strategy will be to convince President Trump that there is no daylight between him and Prime Minister Modi in advancing their shared goals
Next industrial revolution will be driven by biotechnology and bio-economy
IN AUGUST 2024, the Union cabinet approved the BioE3 policy—Biotechnology for Economy, Environment and Employment, a framework policy to leverage biotechnology for India's economic growth, environmental sustainability and employment generation. It prioritises bio-manufacturing initiatives in various sectors like biopolymers, smart proteins, bio-therapeutics, climate-resilient agriculture, and marine and space research.
AMERICAN NIGHTMARE
With his strident anti-immigrant rhetoric and actions, Donald Trump is killing the American dream for both documented and undocumented workers. Indians, especially the H-1B visa holders and aspirants, could suffer the most under the new administration's policies