Mutual funds on a roll

Retail investors have poured Rs 1,33,903 crore in mutual fund schemes during the first quarter (Apr-June) of FY2018-19 as compared to Rs 93,400 crore during Apr-June quarter of FY2017-18, showing an impressive growth of more than 43 per cent over the corresponding quarter previous year.

The data released by Association of Mutual Funds in India (AMFI) indicates that the strong inflow has increased the asset base of the mutual fund industry to Rs 23.40 lakh crore as on June 20, 2018, an increase of almost 15 per cent as compared to the asset base of Rs 20.40 crore as on June 30, 2017.

According to AMFI, inflows from retail investors through systematic investment plans (SIPs) and from the small towns (B-30 cities) continue to be robust. A major chunk of these inflows has come into liquid and equity schemes of mutual funds.

This clearly indicates that retail investors are taking a long-term view of their investments in mutual fund schemes and prefer to invest in stock markets through the mutual fund route. Their preference for the mutual funds is vindicated by the fact that despite markets remaining volatile during the first quarter of the current fiscal, investors continue to invest in liquid and equity mutual fund schemes. This is a good sign and bodes well for the stock markets as it vindicates the faith of investors in the potential of the stock markets for long-term wealth creation.