Mutual Funds

Despite a market correction and continued foreign outflows, Indian retail investors showed remarkable resilience in October 2024 by committing substantial funds to equity schemes. The total equity inflow reached a historic level of Rs 74,727 crores, marking a period of steadfast retail engagement even as market volatility persisted. With the BSE Sensex index experiencing a dip from its peak of 85,879 to around 78,000, investors have doubled down, seizing the opportunity to buy into the market at lower levels, confident in the market’s long-term potential.

AMFI has released the data related to inflow/outflow of funds in various schemes. This article intends to share some insights on this data and you will find it useful to take decisions based on these inputs.

A manufacturing theme mutual fund invests primarily in companies within the manufacturing sector, such as those involved in industrial production, machinery, and raw materials processing. These funds aim to capitalize on the growth and profitability of the manufacturing industry, offering investors exposure to the sector’s potential for long-term returns. If you go by the presentation of HDFC or Mahindra, you would note that they are betting on many sectors including Power, Ports, Railways, Defence, Roads etc… The Government vision in terms of Amrit Kaal 2047, Production Linked Incentive, and Make in India getting a fillip are just some of the factors that suggests that manufacturing theme based fund may perhaps do really well.

One of my clients initiated their PPF account with a public sector bank approximately 14 years ago. Recently, when they approached the bank for guidance on the next steps, they were informed that the only option was to withdraw the amount and initiate a new PPF account with the same bank.

Mutual fund industry has crossed 50 lakh crore mark in January 2024. While it’s common for investors to primarily focus on short-term returns when selecting mutual funds, it’s essential to consider various other factors that play crucial roles in investment decisions.