Editorji is a popular short video news and information platform based in India. It was founded in 2018 by Vikram Chandra, one of India’s leading journalists, and has risen to prominence in the digital news space in a relatively short span of time. The platform is primarily designed for mobile devices, with applications available for Android and iOS.

ABOUT US:

about us editorji

Latest Video News: Editorji provides the latest news video headlines, latest videos clip from India and the World. Get all breaking news videos on Entertainment, Business, Coronavirus, Elections, Politics and more.

Latest Video News, Breaking News, Bollywood, Political, Sports, Business News | Editorji

+91 11 4035 6666 / info@editorji.com
3rd floor, Plot B, Khasara no 360, Sultanpur, New Delhi, Delhi 110030
<a title="mail to us" href="mailto:info@editorji.com">Send Feedback</a>
<a title="Contact Us" href="mailto:info@editorji.com">Contact Us</a>

REACH US

Contact for any questions, suggestions, comments, feedback or advertisement on Editorji.com, we are always looking forward to hearing from you.

Contact Us for Feedback, Suggestions and Advertising 

Editorji content is better experienced in our app.

Over 50% of new mutual fund investors in 2024 are from smaller cities. SIPs from these B-30 cities make up 54% of all SIP accounts, with strong growth in index funds and equity schemes.

How Smaller Cities are Leading the Mutual Fund SIP Boom

Over 50% of new mutual fund investors in 2024 are from smaller cities. SIPs from these B-30 cities make up 54% of all SIP accounts, with strong growth in index funds and equity schemes.

The mutual fund industry in India is witnessing a significant shift, with more than 50% of new investors now coming from smaller cities, known as B-30 cities (beyond the top 30 cities).
This marks a substantial rise in investment activity from these areas, according to the latest data from the Association of Mutual Funds in India (AMFI).
From April to August 2024, the mutual fund industry added 2.3 crore new investors (folios), and over half of these new participants hail from smaller towns and cities.
This growing interest in mutual funds from B-30 cities is a promising sign for the industry, as it fosters a culture of saving and investing, which can lead to greater financial discipline and long-term wealth creation.
However, while the number of new investors is on the rise, smaller cities still account for only 19% of the total Assets Under Management (AUM) of the mutual fund industry as of August 2024. This suggests that while participation is increasing, the average investment size remains relatively low compared to larger urban centers.
<h3>Key Factors Behind the Surge</h3>
Contribution from SIP Accounts: Systematic Investment Plans (SIPs) have played a crucial role in this growth. As of August 2024, 54% of all SIP accounts in the mutual fund industry are from smaller cities. These areas are seeing greater penetration of SIPs, reflecting the increasing financial awareness among investors. Notably, the growth rate in SIP accounts for index funds in smaller cities stands at 18.7%, higher than any other category in the industry.
Access to Direct Plans: The rise of smartphone apps, direct investment platforms, and digital payment systems has made it easier for people in smaller towns to invest in mutual funds. More than 50% of new investors in these areas are opting for direct plans, bypassing traditional intermediaries.
The growth in mutual fund investments from smaller towns is a promising indicator of financial inclusion and greater investment awareness, signaling a potential shift in India&rsquo;s investment landscape.
Also Watch:<a href="https://www.editorji.com/business-news/startups/startup-to-scaleup-spotlight-on-curebay-transforming-healthcare-access-in-rural-india-1727959635862"> Startup To Scaleup | Spotlight On CureBay: Transforming Healthcare Access in Rural India</a>

Equity mutual fund inflows, SIP flows touch new record in June

<h2>As per data revealed by the Association of Mutual Funds of India or AMFI, inflows into equity mutual funds in June touched a record high of over ₹40,000 crore, that's 17% higher than in May.</h2>

Flows into equity mutual funds have continued unabated. As per data revealed by the Association of Mutual Funds of India or AMFI, inflows into equity mutual funds in June touched a record high of over ₹40,000 crore, that's 17% higher than in May. This spike came largely due to increased flows in sectoral and thematic funds which saw around ₹22,000 crore coming in. Total assets under management surpassed the 60 lakh crore mark for the first time in June, touching 61.1 lakh crore. Systematic investment plans of SIP contributions hit a record high for the 12th straight month, hitting 21,262 crore in June. Debt-oriented schemes saw an outflow of over ₹1.07 lakh crore in the month of June, with maximum outflows of over ₹80,000 crore seen in liquid funds.

Systematic investment plan (SIP) contributions in mutual funds have skyrocketed, marking a six-fold increase in just eight years. 

Small Cap funds see outflow for first time in 10 months; SIP flows continue to surge

Systematic investment plan (SIP) contributions in mutual funds have skyrocketed, marking a six-fold increase in just eight years.&nbsp;

Data compiled by the Association of Mutual Funds in India reveals a significant shift in the dynamics of equity fund flows in March. For the first time in 10 months, small-cap funds witnessed an outflow of about ₹94 crore, contrasting with the strong inflows of ₹2,128 crore observed in large-cap funds during the same period.
Overall, the net equity inflows displayed a slowdown, amounting to ₹22,691 crore, down from ₹26,703 crore in the previous month. This fluctuation suggests a different response from investors amidst evolving market conditions and economic uncertainties.
The total assets under management stood at ₹53.4 lakh crore in March, marking a slight decrease from ₹54.54 lakh crore in February. This subtle decline reflects the recalibration of investment portfolios amid changing market dynamics.
Despite the moderation in overall equity inflows, Systematic Investment Plan contributions surged significantly in March. SIP inflows stood at ₹19,271 crore, indicating a robust investor appetite for systematic investment strategies. This surge in SIP contributions is emblematic of a broader trend witnessed over the past eight years, wherein SIP inflows have exhibited remarkable growth.
From a modest ₹3,122 crore in April 2016, SIP contributions have surged to over ₹19,200 crore in March, underscoring investors' growing confidence in systematic investment approaches amidst market volatility.
The shifting patterns in equity fund flows, coupled with the burgeoning SIP contributions, suggest a nuanced investor sentiment characterized by cautious optimism and a preference for systematic and disciplined investment strategies amid market fluctuations.

The strong performance of Systematic Investment Plans and the continuous influx of funds into equity mutual funds indicate a positive outlook among investors. This optimism is fueled by the ameliorating market conditions.

Mutual Funds: AMFI data reveals January SIP surges to ₹18,839 crore

The strong performance of Systematic Investment Plans and the continuous influx of funds into equity mutual funds indicate a positive outlook among investors. This optimism is fueled by the ameliorating market conditions.

In January 2024, the momentum of equity mutual funds in India continued its upward surge, with inflows into open-ended equity funds reaching ₹21,780.56 crore, as revealed by data from the Association of Mutual Funds of India. Notably, sectoral/thematic and small-cap oriented funds emerged as the primary contributors, accounting for ₹4,804 crore and ₹3,256 crore, respectively.
A standout highlight from the latest data is the performance of Systematic Investment Plans, which hit a record high of ₹18,839 crore in January 2024. This surge reflects investors' growing interest and confidence in mutual fund investments, particularly in the equity segment.
Akhil Chaturvedi, the Chief Business Officer of Motilal Oswal AMO Asset Management Company, commented on the significant inflows, stating, "Equity schemes experienced a surge in inflows, reaching approximately ₹21,780 crore in Jan&rsquo;24, compared to ₹16,997 crore in Dec&rsquo;23." He also noted a substantial increase in the multi-cap category funds, which rose to ₹3,038 crore in January 2024 from around ₹1,852 crore in December 2023. Additionally, large-cap funds demonstrated positive contributions this month, reversing the net outflows experienced in December 2023, reported BT.
The shift in investment trends aligns with valuation differentials among large, mid, and small-cap stocks, indicating that large-cap/flexi-cap oriented schemes may continue to attract higher flows in the future. In the Hybrid category, there was a notable increase in inflows, with Mutual Fund Asset Management Companies (MAFs) witnessing an influx of ₹7,079 crore in January 2024, a significant jump from ₹2,420 crore in the previous month.
The robust performance of SIPs and the overall inflow into equity mutual funds signal a positive sentiment among investors, buoyed by improving market conditions and attractive investment opportunities. As investors continue to diversify their portfolios and seek long-term wealth creation, mutual funds remain a favored choice for many in the Indian investment landscape.

Small-cap funds gathered close to ₹3,857 crore, slightly up from ₹3,699 crore previously. In contrast, mid-cap funds fell to ₹1,393 crore from ₹2,665 crore in November.

Equity mutual funds witness 9% surge in inflows, reach ₹17,000 crore in December

Small-cap funds gathered close to ₹3,857 crore, slightly up from ₹3,699 crore previously. In contrast, mid-cap funds fell to ₹1,393 crore from ₹2,665 crore in November.

In December 2023, equity mutual funds experienced a notable surge in inflows, recording a substantial ₹17,000 crore, according to the latest data released by the Association of Mutual Funds in India
The breakdown of these inflows unveils intriguing trends within various segments of equity mutual funds. Small-cap funds attracted a significant chunk, amounting to nearly ₹3,857 crore, showcasing a slight uptick compared to the previous month's ₹3,699 crore. Conversely, mid-cap funds encountered a decline from ₹2,665 crore in November to approximately half that amount, totalling ₹1,393 crore in December.
Highlighting specific categories, multi-cap funds received a healthy influx of ₹1,851 crore, while large-cap funds experienced an outflow of ₹280.9 crore during the same period.
A notable aspect was the consistent growth observed in systematic investment plans (SIPs), which accumulated ₹17,610 crore in December, as per the AMFI data.
Venkat Chalasani, the Chief Executive of AMFI, noted the remarkable ₹4,259 crore inflow into sectoral funds, attributing the ongoing positive investment momentum to multiple factors. He cited subdued inflationary pressures and a thriving economy, both contributing to the buoyancy witnessed in the markets, reported Mint.
Beyond equity funds, hybrid mutual funds also witnessed substantial inflows of ₹15,009 crore. Within this category, arbitrage funds were particularly attractive, drawing in ₹10,645 crore, while equity savings and multi-asset allocation funds gathered ₹1,080 crore and ₹2,420 crore, respectively.
Index funds experienced an influx of ₹703 crore, while other Exchange-Traded Funds (ETFs) collectively accumulated ₹200 crore. Additionally, gold ETFs secured ₹88 crore during the period.
December also witnessed the introduction of 21 new fund offers, amassing a total of ₹9,872 crore. Of these, 14 were open-ended schemes, receiving ₹7,812 crore in funding, while seven closed-ended schemes collectively gathered ₹2,060 crore.
Among the newly launched funds were six sectoral/thematic mutual funds, attracting a combined investment of ₹6,321 crore, and two hybrid funds that amassed ₹1,228 crore.
Also Watch: <a href="https://www.editorji.com/business-news/invest-smart/invest-smart-2024-elevate-your-financial-game-with-expert-advice-1703852251512#google_vignette">Invest Smart 2024: Elevate your financial game with expert advice</a>

By November 2023, the industry saw a notable rise in net inflows, reaching ₹25,616 crore from ₹11,373 crore in January, indicating a 93% surge year-on-year compared to ₹13,264 crore in November 2022.

Mutual Fund inflows surged by 125% in 2023; may reach ₹100 lakh crore in a few years: ICRA

By November 2023, the industry saw a notable rise in net inflows, reaching ₹25,616 crore from ₹11,373 crore in January, indicating a 93% surge year-on-year compared to ₹13,264 crore in November 2022.

The mutual fund industry has witnessed an unprecedented surge, with net inflows skyrocketing by 125% throughout the calendar year 2023, a report by ICRA Analytics reveals.
As of November 2023, the industry recorded a substantial net inflow of ₹25,616 crore, marking a significant ascent from the ₹11,373 crore seen in January of the same year. This phenomenal increase signifies a staggering 93% surge in year-on-year net inflows compared to ₹13,264 crore in November 2022.
Reflecting this exponential growth, the net Assets Under Management (AUM) surged to approximately ₹49.05 lakh crore by November 30, 2023, witnessing a notable rise from ₹39.62 lakh crore registered on January 31, 2023.
Forecasts for the new year anticipate a dynamic landscape for the industry, driven by factors like interest rate fluctuations and sustained global crude oil price stability, observed Ashwini Kumar, Head-Market Data at ICRA Analytics to ET.
Kumar emphasized, "The resilience of the Indian economy, coupled with prudent fiscal and monetary policies, as well as potential RBI interest rate adjustments if inflation remains controlled, will likely stimulate higher inflows into the industry throughout 2024."
SEBI, the capital market regulator, is actively engaging with mutual fund entities to explore methods to make Systematic Investment Plans (SIPs) viable with contributions as low as ₹250 per month.
The industry's SIP landscape has witnessed a surge, recording an all-time high of 7.44 crore accounts in November 2023, up from 7.30 crore in October 2023. Concurrently, SIP AUM surged to ₹9.31 lakh crore in November 2023 from ₹8.60 lakh crore in October 2023.
Experts anticipate that the concept of 'sachetisation', encouraging smaller investments, will promote financial inclusion, bolster equity markets, and lead to increased participation by small retail investors through SIPs, thereby fostering a robust investment culture. Also Watch: <a href="https://www.editorji.com/business-news/personal-finance/nominee-to-mutual-fund-or-demat-account-deadline-is-december-31-check-process-1702643850671#google_vignette">Deadline for adding a nominee to your mutual fund and demat account is 31st December; check process</a>

SIP contribution of ₹ 16,042 crores in September 2023 is the highest to date 




Mutual Fund inflows slip in September; debt fund outflows see sharp rise

SIP contribution of ₹ 16,042 crores in September 2023 is the highest to date&nbsp;
&nbsp;

Mutual Fund Inflows: The Mutual Fund inflows for September declined on a month-on-month basis and stood at Rs 14,091.26 crore, as per data from the Association of Mutual Funds of India.&nbsp; Flows into equity funds fell more than 30% month on month. While inflows into mid &amp; small cap funds continued, large cap funds witnessed an outflow.&nbsp; Assets Under Management
The Mutual Fund Industry's Assets under Management (AUM) stood at Rs 46.58 lakh crore as on September 30. The contribution of equity AUM shot up marginally to Rs 19.08 lakh crore from the previous month's Rs 18.6 lakh crore.
Also Read: <a href="https://www.editorji.com/business-news/inflows-into-equity-mutual-funds-surge-investors-pumped-in-20-245-crore-in-august-1694424107932">Inflows into equity mutual funds surge, investors pumped in ₹20,245 crore in August</a>
<h3>Mid, Small-cap Funds Outperform</h3>
The Mid and Small-cap funds have outperformed &nbsp;large-cap funds and ELSS funds or the tax-saving funds in September. The equity mutual funds received Rs 2,678.47 crore, compared to Rs 4,264.82 crore in August. While the Sectoral/Thematic category received the highest inflows of Rs 3,146.85 crore, the small-cap category received the second highest inflows.
<h3>Outflows</h3>
Debt Mutual funds' outflow rose sharply in September. Except for long duration funds and gilt funds, most of the debt mutual funds saw high outflow.&nbsp;
Liquid funds saw an outflow of Rs 74,177 crore against the outflow of Rs 26,824 crore in August. ELSS outflow widened to Rs 141 crore against Rs 27 crore outflows on a monthly basis
<h3>Contribution of SIPs&nbsp;</h3>
The contribution via SIPs touched an all-time high of Rs 16,042 crore in September. In August, the SIP contribution was at a record high of Rs 15,245 crore through SIPs offered by mutual fund players.

In August 2023, Indian equity mutual funds saw robust inflows of ₹20,245 crore, a substantial increase from July's ₹7,505 crore. Conversely, debt mutual funds experienced outflows of ₹25,872 crore

Inflows into equity mutual funds surge, investors pumped in ₹20,245 crore in August

In August 2023, Indian equity mutual funds saw robust inflows of ₹20,245 crore, a substantial increase from July's ₹7,505 crore. Conversely, debt mutual funds experienced outflows of ₹25,872 crore

Retail investor interest in equity mutual funds continued to remain strong. In August, inflows into equity funds surged to ₹20,245 crore, data from the association of mutual funds of India showed.&nbsp; This surge marked a significant increase compared to the ₹7,505 crore inflow observed in July 2023.
Meanwhile, debt mutual funds saw outflows totaling ₹25,872 crore during the same period.
The overall assets under management (AUM) in the Indian mutual fund industry stood at ₹46.63 lakh crore, a slight uptick from ₹46.37 lakh crore in the previous month.&nbsp;
Small Cap funds witnessed a notable inflow of ₹4,265 crore, compared to ₹4,171 crore in the previous month. And midcap funds recorded an inflow of ₹2,512 crore in August, marking a significant increase from ₹1,623 crore in the previous month. This demonstrates continued investor interest in both the small-cap and mid-cap segments.&nbsp;
Systematic Investment Plan (SIP) inflows reached an all-time high, hitting ₹15,814 crore, surpassing the previous month's figure of ₹15,243 crore. SIPs have been gaining popularity among retail investors for their disciplined approach to long-term wealth creation.
Inflows into new fund offers (NFOs) also saw an uptick, amounting to ₹7,343 crore in August, showing an increase from the previous month's figure of ₹6,723 crore.&nbsp;
&nbsp;

If the PAN details are not updated on time, the user will not be allowed to redeem or withdraw from any of the investments made in the Mutual Fund portfolio

Mutual Funds nomination deadline ends on Sept 30; over 25 lakh PAN holders yet to update details

If the PAN details are not updated on time, the user will not be allowed to redeem or withdraw from any of the investments made in the Mutual Fund portfolio

The deadline to update the nomination for your mutual fund investment ends on September 30 and many investors are yet to complete this task. As per the records of the registrar and transfer agent (RTA) CAMS, there are as many as 25 lakh PAN holders that are yet to update their nomination details.
If the nomination details are not updated on time, the Mutual Fund portfolios would get frozen for all debit activities. The user will not be allowed to redeem or withdraw from any of these investments. However investment can continue to happen in the existing portfolio.
Also Read: <a href="https://www.editorji.com/business-news/inflows-into-equity-mutual-funds-surge-investors-pumped-in-20-245-crore-in-august-1694424107932">Inflows into equity mutual funds surge, investors pumped in ₹20,245 crore in August</a>
The SEBI had extended the deadline to September 30 after users found it difficult to update the nomination by the earlier said March 30, 2023.
Meanwhile, many mutual fund distributors highlight several hurdles faced by investors in updating their nomination. Joint folios owned by more than one individual have faced difficulties in updating their nomination details online.&nbsp;
Irrespective of the mode through which the details are updated, for Joint portfolios consent of all joint holders is required. For updating online, OTP authentication is required.&nbsp;
So, unless the folio has the contact details (email ID and mobile) of all the holders, or at least the KYC records with the RTAs have the contact details of the joint holder (that is, the second holder in case of two holders), this cannot be done online.
Meanwhile, new investors can update nomination online when they first register on MFU. But, as of now, existing users of MFU can update their nomination only by submitting a physical nomination form.&nbsp;
&nbsp;

In this episode of Invest Smart, Editorji's Avni Raja speaks to Pankaj Mathpal, Founder & CEO, Optima Money Managers about why you need long-term investments. 

Invest Smart: Why you need long-term investments in Mutual Funds

In this episode of Invest Smart, Editorji's Avni Raja speaks to Pankaj Mathpal, Founder &amp; CEO, Optima Money Managers about why you need long-term investments and the importance of remaining invested in equity mutual funds for the long-term

Latest data by capital markets regulator SEBI shows that in the last financial year, half of investments made in mutual funds got redeemed within a year. Not just that, 73% of mutual fund units were redeemed with just 2 years of investments. And only 3% of the investments continued for more than 5 years.&nbsp; Now, this is quite concerning. Because investing for the long term, is the bedrock of wealth creation. Its only after the initial few years that you actually see the benefits of the power of compounding. For equity mutual funds experts say a minimum of 5 years is a must.&nbsp; Chasing past returns can often lead to disappointment and investors exiting their equity mutual funds too soon. Instead financial planning and investing based on your financial goals and risk appetite will ensure you invest in the right instruments and remain invested for the long term, says Pankaj Mathpal, CEO, Optima Money Managers.&nbsp; It is also important to ensure that your investment beat inflation in the long term. For this, long-term equity investments is a must, says Mathpal.&nbsp; 
&nbsp;

With the strong rally in the stock market what should your small cap investment strategy be? In this episode of Investsmart, Feroze Azeez of Anand Rathi Wealth shares his view on current valuations 

Investsmart: How to manage investments in smallcap and midcap funds

With the strong rally in the stock market what should your strategy be for investing in smallcap funds? In this episode of Investsmart, Feroze Azeez of Anand Rathi Wealth shares his view on the current valuations and explains how investors should manage their returns expectations

With the strong rally in the stock market what should your small cap investment strategy be? In this episode of Investsmart, Feroze Azeez of Anand Rathi Wealth talks about current valuations and explains how investors should manage expectations

The Nifty and the Sensex have been on a dream run, scaling new peaks time and time again. Amidst this, it is smallcap and midcaps space which has been on roll. There are many who are now wondering what to make of this market rally and whether there is still an opportunity to invest into smallcap funds or midcap funds.&nbsp; Feroze Azeez, Deputy CEO of Anand Rathi Wealth Management believes that this rally was long overdue and that the current valuations are fair.&nbsp; Specifically on smallcaps, he says that smallcaps are still extremely attractive with a good potential upside. However, he cautions, with the smallcap universe being so large, it is very importat to choose the right fundhouse and the right fund. He also warns, that while there is an upside, investors who do invest in the space should be ready to take a short term 10%-15% mark down.&nbsp;
Strategy to invest in a rising market:&nbsp; * Stick to your asset allocaton&nbsp; * Continue your SIPs&nbsp; * Hold on to your current investments&nbsp; * Rebalance your portfolio in light of the run up in equities&nbsp; * Lumpsums can be invested in 3-4 tranches&nbsp;
&nbsp;
&nbsp;

In this episode of Invest Smart, Editorji's Avni Raja speaks to Shweta Rajani of Anand Rathi Wealth about how investors should manage their mutual fund investments in a bull market. 

Invest Smart: How to manage your mutual fund investments in a rallying market

In this episode of Invest Smart, Editorji's Avni Raja speaks to Shweta Rajani of Anand Rathi Wealth about how investors should manage their mutual fund investments in a bull market.&nbsp;

The stock market has been seeing a strong rally over the past few months. In fact just recently, the Sensex touched a new peak. The big question now is, how should you manage your mutual fund investments? Is it time to rebalance portfolios or is it time to book profits?&nbsp; This is not the time to book profits, says Shweta Rajani, Vice President - Mutual Fund Research at Anand Rathi Wealth. 'Markets are at a fair value currently and there is upside potential from here', she adds.&nbsp;
Rajani recommends that booking profits should only be done if one's desired equity allocation has been achieved. Else, investors should relook at the market cap mix of one's portfolio. If one's portfolio is large-cap heavy, she suggests increasing allocation towards small-caps. For new investors in Mutual Funds, Rajani recommends a mix of 50% in large-caps, 20% in mid-caps and 30% in small-caps.&nbsp;
&nbsp;

In this episode of Invest Smart, Editorji's Avni Raja speaks to Kirtan Shah, Founder & CEO, Credence Wealth Advisors on how to choose a mutual fund and what are the thumb-rules to keep in mind while deciding. 

Invest Smart: How to choose a mutual fund - all you need to know

In this episode of Invest Smart, Editorji's Avni Raja speaks to Kirtan Shah, Founder &amp; CEO, Credence Wealth Advisors on how to choose a mutual fund and what are the thumb-rules to keep in mind while deciding.&nbsp;

Choosing which mutual fund to invest in can often be confusing. With multiple fundhouses and various schemes, there are a host of factors that an investor needs to take into account before deciding which fund to opt for.&nbsp;
Founder &amp; CEO of Credence Wealth Advisors, Kirtan Shah says, it is crucial to assess your risk appetite and choose a fund based on your asset allocation. It's also important to be disciplined and invest for the long term, especially when it comes to equity investments.&nbsp;
For investments in large cap funds, Shah recommends investing for a minimum of three years. Where as for midcap and small cap funds invest for at least 5 years and 8 years respectively. He also suggests choosing an index fund for one's large cap allocation and opting for actively managed funds for one's mid and small cap fund allocations.&nbsp; Shah also explains the risks of over-diversification or investing in too many similar kinds of funds. This can be more detrimental than beneficial to one's portfolio.&nbsp;
&nbsp;
&nbsp;

In this episode of Invest Smart, Editorji's Avni Raja speaks to Harsh Roongta about the pros and cons of both debt mutual funds and fixed deposits, which one might fit better into your portfolio and what factors should you consider 

Invest Smart: Fixed deposits Vs debt mutual funds

In this episode of Invest Smart, Editorji's Avni Raja speaks to Harsh Roongta about the pros and cons of both debt mutual funds and FDs, which one might fit better into your portfolio and what factors should you consider which choosing which one to opt for.&nbsp;

Ever since the taxation structure of debt mutual funds was changed where the tax benefits were taken away, there has been a relook at the category. There is a perception that debt mutual funds and fixed deposits are the same because you pay tax as per you income tax slab. However, there still remain some significant differences between the two investment avenues with debt mutual funds working out to be more beneficial that fixed deposits in certain aspects.&nbsp;
Another factor to consider is the growth versus dividend options of debt mutual funds.&nbsp; Harsh Roongta, Fee Only Investment Advisers LLP, explains the concept of growth vs dividend option of debt mutual funds using the the analogy of a 100,000-litre water tank representing one's mutual fund investment and 6,000 litres of water supplied annually by the municipal autho&shy;rities as the income generated by the fund.
One could either have the 6,000 litres of municipal water delivered directly home, which would be akin to the fund&rsquo;s dividend option. Alternatively, one could add the 6,000 litres to the tank (similar to the growth option) and then withdraw from it. The tank would now contain 106,000 litres. When in future he withdraws 6,000 litres from the tank, 94.34 per cent (100,000/106,000) would be his own water while 5.66 per cent (6,000/106,000) would be municipal water.
On choosing the dividend option, one would need to pay tax immediately on the 6,000 litres of municipal water delivered home.
But in the growth option, withdrawing 6,000 litres from the tank that contains a mix of one's own and municipal water, only 340 litres (or 5.66 per cent of 6,000 litres) would be municipal water on which one would have to pay tax. The remaining 5,660 litres (94.34 per cent of 6,000 litres) would be one's own water on which they would not have to pay tax. This means one would pay tax on only a fraction of the water consumed, even though the amount consumed would be the same as in the dividend option. The amount of water remaining in the tank would also be the same at 100,000 litres.
"The structural benefit of a growth scheme &mdash; of tax being charged on a lower amount &mdash; persists. This will allow investors to benefit from lower tax payments indefinitely, as long as the withdrawals are equal to or less than the income added during the year.", says Roongta.&nbsp;
Fee Only Investment Advisers LLP is a SEBI registered Investment advisory firm.&nbsp;

Equity mutual fund inflows fell to a 4 month low in April. Meanwhile, SIP inflows stood at ₹ 13,727.63 crore in April. In March the SIP inflow was at ₹ 14,276.06 crore.

Equity mutual fund inflows drop 68% in April; lowest in four months

Equity mutual fund inflows fell to a 4 month low in April. Meanwhile, SIP inflows stood at ₹ 13,727.63 crore in April. In March the SIP inflow was at ₹ 14,276.06 crore.

According to data released by the Association of Mutual Funds in India the net investments in equity and equity-linked schemes have declined more than 68% month on month to ₹ 6,480.3 crore. This is the lowest inflows recorded in four months.&nbsp;
The drop in mutual fund investment is despite the rise in benchmark indices. The S&amp;P BSE sensex rose 3.6% while the NSE Nifty rose 4.06% in April.&nbsp;
However, investments in small and mid cap funds continued in April, registering inflows for 26 months in a row. The small cap funds saw an inflow of ₹ 2,182.44 crore, followed by mid-cap that recorded an inflow of &nbsp;₹ 1,790.98 crore. Meanwhile, the large cap funds received the lowest inflow of ₹ 52.63 crore.&nbsp;
All equity fund categories received inflows except for focused funds in April. The funds witnessed an outflow of ₹ 130.91 crore in April 2023. Meanwhile, the liquid funds registered inflows in April after 4 months of consecutive outflows. The money market fund saw an inflow of ₹ 13,960.96 crore in April. In March the fund registered an outflow of ₹ 11,421.7 crore.
SIP inflows stood at ₹ 13,727.63 crore in April. In March the SIP inflow was at ₹ 14,276.06 crore. The number of SIP accounts as of 30th April went up to 6.42 crore compared to 6.36 crore as of March 31.
"I am quite confident that we will regain the Rs 14,000 crore number in May," AMFI Chief Executive Officer NS Venkatesh said in a press conference call. The SIP numbers are showing a "promising and upward" trend for the new financial year, he added.&nbsp;

A new report by CAMS has revealed that millennials have shown more interest in investing through mutual funds in the last 5 financial years

Millennials drawn to mutual funds as an investment option: CAMS report

A new report by CAMS has revealed that millennials have shown more interest in investing through mutual funds in the last 5 financial years

A new report by Computer Age Management Services (CAMS) has revealed that 54% of first-time mutual funds investors over the last five financial years have been millennials. A total of 84.8 lakh new millennial investors have joined the mutual funds serviced by CAMS.
CAMS released the report, 'The emerging force of the millennial investor is here to stay &amp; grow&rsquo; at the 17th CII Mutual Fund Summit held in Mumbai. The report includes actionable insights for asset managers, intermediaries, advisors and service partners, covering several key areas.
"The addition of millennials who formed 54% of the new investor base into mutual funds has been possible on the back of five key drivers- massive awareness campaigns, conducive market conditions, digital access, simplified KYC and concerted intermediation and advisory. AMCs, Intermediaries, Advisors and CAMS have the responsibility to give these investors a superior experience as they traverse the journey", said Managing Director of CAMS Anuj Kumar&nbsp;
CAMS released the report based on data from the mutual funds serviced by CAMS which account for 69% of the Indian mutual funds industry. As per the data a total of 1.57 crore new investors entered CAMS serviced Funds during FY19-FY23. Out of this, 54% that is 84.8 lakh were millennials. Of these 84.8 lakh, nearly 26% are women.
About 33 lakh have invested in more than one fund house over the last five years. The report also, mentioned that 85% of the new millennial entrants came from urban locations. The gross inflow across the five years were over ₹ 1,00,000 crore. Out of this, over ₹ 65,000 crore was into equity schemes.&nbsp;

Systematic investment plans, increased by 25% to reach ₹1.56 lakh crore in the mutual fund sector in 2022–23

Mutual Funds' SIP collection rises 25% to ₹1.56 lakh crore in FY23

Systematic investment plans, increased by 25% to reach ₹1.56 lakh crore in 2022&ndash;23

Inflows in the mutual fund industry through systematic investment plans or SIPs reached Rs 1.56 lakh crore in 2022-23, up 25 per cent from the preceding fiscal, suggesting retail investors' trust in the route despite volatility in the markets.
In comparison, an inflow of ₹1.24 lakh crore through the route was registered in 2021-22 and ₹96,080 crore in 2020-2021, data with the Association of Mutual Funds in India (Amfi) showed.
Moreover, mutual fund SIP contribution has seen over three-fold rise during the last seven years. It was at ₹43,921 crore during 2016-2017.
Additionally, SIP book has also grown consistently from ₹12,328 crore in March 2022 to an all-time high of ₹14,276 crore in March 2023, indicating a growth of 16 per cent.
During the financial year, SIP inflows averaged nearly ₹13,000 crore flows per month, helping investors to stay in the stock market and benefit from rupee cost averaging. The steady inflow suggests resilience in domestic market which have been a strong counterbalance to FPIs (Foreign Portfolio Investors) selling.

Inflows via systematic investment plans cross Rs 14,000 crore in March for the first time ever. While equity fund inflows were highest in the past 12 months, the debt category witnessed a net outflow of over Rs 56,000 crore.

Equity mutual fund inflows in March at ₹ 20,534 crore; highest in a year

Inflows via systematic investment plans cross Rs 14,000 crore in March for the first time ever. While equity fund inflows were highest in the past 12 months, the debt category witnessed a net outflow of over Rs 56,000 crore.

The net inflow into equity funds during March stood at ₹ 20,534.21 crore, as per data from the Association of Mutual Funds in India. This is over 30% higher than February and the highest inflows in the category in the last 12 months.
This surge in the equity fund inflows was aided by investments in sectoral and thematic schemes, which alone saw a total inflow of ₹ 3,928.97 crore. Dividend yield funds received inflows of Rs 3,715 crore. &nbsp; Meanwhile, investments through systematic investment plans topped the Rs 14,000 crore mark for the first time ever. The SIP contribution for March came in at Rs 14,276 crore compared with Rs 13,686 crore in February. &nbsp; However, the debt category witnessed a net outflow of Rs 56,884 crore in March, with liquid funds seeing the maximum outflows of Rs 56,924 crore. Liquid funds typically are used by companies to park short term cash. Among the debt funds, corporate bond funds received the maximum interest and saw inflows of Rs 15,626 crore.
Average assets under management stood at Rs 40.05 lakh crore in March as compared to Rs 40.69 lakh crore in February.

Capital markets regulator SEBI has asked mutual fund companies to put on hold B-30 commissions, that is, an extra component in the expense ratio on new inflows from non-metros beyond the top 30 cities. 

SEBI stops small-town linked incentives for Mutual Funds 

Capital markets regulator SEBI has asked mutual fund companies to put on hold B-30 commissions, that is, an extra component in the expense ratio on new inflows from non-metros beyond the top 30 cities.&nbsp;

Capital markets regulator SEBI is concerned with the misuse of an incentive structure to bring in new mutual fund inflows from small towns or B-30 cities. Keeping this in mind, SEBI has asked mutual funds to put this B-30 incentive structure on hold until asset management companies are able to put in place a mechanism to stop its misuse.
SEBI had permitted mutual funds an additional component of expense ratio of 30 bps or 0.3% on new inflows from non-metros or B-30 cities. B-30 means 'beyond 30' or cities other than the top 30. Mutual funds then pass this additional amount on to distributors who bring in these flows. This was done to incentivise mutual fund flows from smaller towns.&nbsp;
The markets regulator observed that this incentive structure was being exploited by splitting transactions, churning investments and the method of calculating B-30 incentives. SEBI also pointed out that there is no proper mechanism in place to check the misuse of this structure.&nbsp;
However, SEBI has said that either the incentive structure will be restored with the necessary safeguards or a new mechanism will be put into place to incentivise flows from smaller towns.&nbsp;
&nbsp;

Equity mutual funds witnessed strong inflows in the month of January. Equity inflows rose over 70% from December. This despite the stock market volatility over the last month.   

Big surge in equity mutual fund inflows in January 

Equity mutual funds witnessed strong inflows in the month of January. Equity inflows rose over 70% from December. This despite the stock market volatility over the last month.&nbsp; &nbsp;

Despite the market volatility over the last few months, data from the Association of Mutual Funds of India (AMFI) shows a strong surge in equity mutual fund inflows. The jump in the equity fund inflows was led largely by investments into small cap funds.&nbsp; In January, inflows into equity mutual funds were 72% higher, at Rs 12,546 crore, than in December. Not just that, SIP (Systematic investment plan) flows also remained strong in January, and rose to Rs 13,856 crore, which was a new record high. In December, SIP flows stood at Rs 13,573 crore.&nbsp; Meanwhile, the debt mutual funds category witnessed a net outflow of Rs 10,316 crore in January. The outflow for the debt category in December was much higher at Rs 21,946 crore.&nbsp; Akhil Chaturvedi, chief business officer, Motilal Oswal AMC told Moneycontrol, &ldquo;Strong flows for the month supported by SIP inflows, despite a volatile month with markets being subdued the net positive flows is a sign of increasing maturity of investors to continue their allocations in equity mutual funds.&rdquo;&nbsp;
&nbsp;

mutual funds

Categories