Ahmedabad: With profits made from individual stocks invested back into equity funds (MFS), assets managed by funds related to equity in Gujarat swell to the record level in August.
The current red-hot rally in the stock market has triggered their asset growth.
Assets in the management of equity mutual funds in the country jumped by Rs 7,763.8 Crore at Rs 1.24 lakh Crore in August compared with Rs 1.16 lakh crore in July, showing data collected by the Association of mutual funds in India (AMFI).
Apart from the increase in the value of clean assets after flooding the equity index, fresh investment becomes an equity-oriented scheme to increase the mutual fund ‘Aum, said analyst.
“Stock prices of several companies, regardless of size or sector, report an unprecedented surge, provide a return that ranges from 2 to 6 times actual investment in a year.
More than a longer period, returns in some cases even higher.
Retail and HNI investors order profits into individual shares and reinvest part of their increase to the Equity MFS, “said Jayesh Vithalani, a Ahmedabad financial analyst.
Analysts also associate fresh inflows into new fund offers and transfer funds from real estate investment and bank deposits for investment surge in equity mutual funds.
“Some new fund offers are launched which attracts many investments from retail and HNI investors, contributing to the main inflows in equity funds.
In addition, there are reduced interests between investors for fixed deposits and bonds due to limited returns.
Therefore, people Transferring mature deposits remains a mutual fund that promises a good return, “said Mumukshu Desai, Director of the Ahmedabad-based financial advisory fund.
According to Desai, SIP’s entry flow remains neat and touches the level of Rs 10,000 Crore Pan India.
“The trend for SIP investment is bullish in Gujarat also with several new investors choosing SIPS and the rest continues the existing,” he added.
GUJ’s equity fund mutual assets swell to the record level
