Stock Market The period of huge fluctuations continues but it does not seem to be affecting the mutual fund investors. Mutual fund investors are continuously investing. Let us tell you that the assets under management (AUM) of the mutual fund industry has seen a record increase in July. It has increased by 6 percent on a monthly basis to Rs 64.69 lakh crore, which was Rs 60.89 lakh crore in June. The maximum money in mutual fund investment has come in sectoral and thematic funds. In this category, a net investment of Rs 18,386.35 crore has come in July.
What is a sectoral fund?
Sectoral mutual funds are mutual fund schemes that invest investors’ money in a particular sector. These sectors can be utilities, energy, infrastructure, etc. Sector funds, sometimes called sectoral funds, invest in stocks of companies with different market capitalizations and security classes. These funds give people the option to invest in the best-performing stocks in the sector. As a result, these funds are able to give higher returns. Due to good returns on investment, investors’ interest in sectoral mutual funds has increased.
Why is investment in mutual funds increasing?
The reason for the increase in investment in mutual funds is the increase in the trend of SIP in the country. According to the data of the Association of Mutual Funds in India (Amfi), an investment of Rs 23,332 crore has been made through SIP in July, which is the largest figure so far. However, equity investment has come down by 8.61 percent to Rs 37,113.4 crore, which was Rs 40,608.19 crore in June. This is the 41st consecutive month when investment in open-ended equity funds has been positive. However, during this period, the market saw a good rise. In July, the Sensex has given a positive return of 3.43 percent and the Nifty 3.92 percent.
Record breaking investment in SIP
Due to the continuous increase in investment through Systematic Investment Plan (SIP), SIP AUM has increased to Rs 13,09,385.46 crore. This is the highest ever figure of SIP AUM. In June it was at Rs 12,43,791.71 crore. Venkat Chalasani, Chief Executive at AMFI, said that the growth rate of the industry is positive due to continuous investment in mutual funds by retail investors. At present, mutual funds have become an important part of the financial strategy of retail investors.
Invest in debt mutual funds as well
Apart from this, a net investment of Rs 1,19,587.60 crore has been made in debt mutual funds in July. In contrast, there was a net withdrawal of Rs 1,07,357.62 crore in June. A net investment of Rs 70,060.88 crore has been made in the short term liquid fund category and Rs 28,738.03 crore in money market funds.
Input: IANS
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