Indian financial services are diversified and are undergoing rapid expansion and changes in terms of services being provides and new entrants of financial services providers too. One of the product which is being trusted upon by retail and novice investor is Mutual funds.
Mutual fund managers look for the stocks or financial asset that will aid to increase their return and prove them to be the best fund in the market. However, we must understand that even mutual fund managers ultimately invest in the equity market. Mutual fund is considered to be one safe avenue to invest in the equity market by retail investors
Mutual fund as an investment asset has been promoted and is accepted by the market. Retail participation has also grown in the market, looking at the benefits of mutual funds like its being professionally managed, benefits of diversification which ultimately minimizes risk. Such advantages attached to mutual fund have raised the mutual fund portfolio to 66.5 millions, by December 2017.
Inflow in the mutual funds have risen significantly to Rs 53,446 crore (US$ 8.26 billion) between April-January 2018, though systematic investment plan (SIP) route.
Total Asset under management under various mutual fund grew by 40% on YoY to hit a record Rs 23 lakh crore (US$ 358.78 billion) at the end of November 2017.For the same period under scanner, mutual fund equity portfolios inched to the level of 46.63 million, of which 7.6 million were added till FY17, November.
Rise in number of equity mutual fund portfolio coupled with rise in investment and financial awareness, will help the Indian brokerage industry to surge by 15%-20% to Rs 18,000-19,000 crore (US$ 2.80-2.96 billion) in FY2017-18.
Likeness of mutual fund can be judged by whopping inflow into the mutual fund which amounted to $51.02 billion in the year 2016-17, which is marked as highest inflow since the fiscal year 1999-2000.
Mutual fund is not only favourite among the retail investor with participation of 25.25%, Corporate have equal level of interest in mutual fund, with their participation rising to 43.03% of the total market participations.
Thus all the above data are hinting towards rise in mutual fund and their loyalty among the investor. Apart from the above given numbers, good return even when markets are bleeding is also one reason which make mutual fund as one of the favourites investment option.