The year 2021 has been good for equity mutual fund investors. So far this year, the benchmark Nifty 50 index rose over 22 percent, and outperformed many global peers. Equity mutual funds followed suit and rewarded investors handsomely. Here’s a look at the equity MFs' journey in 2021 through charts.
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While foreign institutional investors (FII) were inconsistent on infusing money into the Indian equities, mutual funds turned net buyers in 2021, thanks to the new fund launches and consistent SIP inflows. As per AMFI data, equity related schemes (equity and hybrid) received net inflows of around Rs 72,000 crore year-to-date (YTD).
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Retail and high net-worth investors prefer the SIP route to getting into mutual funds to participate in the equity market. SIP assets under management (AUM ) grew about 26 percent to Rs. 5,03,597 crore (as of July 2021) in 2021.
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Retail investors’ accounts in mutual funds grew at faster pace in 2021, AMFI data shows. Over the last two years, there has been increased interest among retail investors in the mutual fund categories such as global mutual funds, index funds and equity oriented funds.
Technology funds were ahead of the pack and showed resilience, as companies and work places adopted to technology as work-from-home became the new normal during the pandemic. Infrastructure sectors find favour when countries around the world began to show signs of market recovery. Small cap funds continued their rally in 2021 too.
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Smallcap, Infrastructure and technology funds were the top of the chart while MNC, FMCG and banking funds were the bottom performers in 2021. Only those funds that have completed three years have been considered (There was an error in the earlier slide as recently-launched schemes were included in the list. The error is regretted).
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Stocks belong to financial services especially from Nifty next 50 have found favour among the mutual funds.
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Mid-sized banking and financial services companies were preferred among the mutual funds.
