 "Equity MF assets at record high of Rs 4.28 lakh crore")
Assets being managed by equity mutual funds soared to a record high of Rs 4.28 lakh crore in June.
These have increased 21 per cent from the 2016 low of Rs 3.54 lakh crore in February, on growing inflows and a sharp rise in stock prices.
Inflow through Systematic Investment Plans also helped. The market pegs this at about Rs 3,300 crore a month.
Assets under management in mutual fund industry overall, including debt schemes, were Rs 13.8 lakh crore at the end of June. Equity schemes account for nearly a third .
Sunil Singhania, chief investment officer, equity, Reliance Mutual Fund, said there was potential for a higher allocation to equity. "As a percentage of the total wealth in Indians' hands, we hold only 1-1.5 per cent in equities,” he said.
Investors have been increasing their exposure to equities during sharp corrections. In January and February, equity funds saw about Rs 5,000 crore of inflows, as the market fell by over 10 per cent. Following Brexit, too, there was a rise in transactions as investors made additional purchases.
Indian investors have played an important role over the past two years in countering the foreign investors’ outflow. Nearly Seven million new equity accounts have been opened and there has been a net inflow of Rs 1.5 lakh crore.
With declining interest rates in bank deposits, investors are diverting a higher portion of their financial savings to equities.
Navneet Munot, chief investment officer of SBI Mutual Fund, said, "These are opportunities investors may not like to miss. They have been underweight on equities and such corrections allow them to increase their allocation."
These have increased 21 per cent from the 2016 low of Rs 3.54 lakh crore in February, on growing inflows and a sharp rise in stock prices.
Inflow through Systematic Investment Plans also helped. The market pegs this at about Rs 3,300 crore a month.
Assets under management in mutual fund industry overall, including debt schemes, were Rs 13.8 lakh crore at the end of June. Equity schemes account for nearly a third .
Sunil Singhania, chief investment officer, equity, Reliance Mutual Fund, said there was potential for a higher allocation to equity. "As a percentage of the total wealth in Indians' hands, we hold only 1-1.5 per cent in equities,” he said.
Investors have been increasing their exposure to equities during sharp corrections. In January and February, equity funds saw about Rs 5,000 crore of inflows, as the market fell by over 10 per cent. Following Brexit, too, there was a rise in transactions as investors made additional purchases.
Indian investors have played an important role over the past two years in countering the foreign investors’ outflow. Nearly Seven million new equity accounts have been opened and there has been a net inflow of Rs 1.5 lakh crore.
With declining interest rates in bank deposits, investors are diverting a higher portion of their financial savings to equities.
Navneet Munot, chief investment officer of SBI Mutual Fund, said, "These are opportunities investors may not like to miss. They have been underweight on equities and such corrections allow them to increase their allocation."