Heightened investor awareness and the growing SIP culture are acting as big pulls for participation in the equity market through MF investing
A slew of advisors have realised that SIPs are a good way to grow business. The monthly investments through SIP route in equity mutual funds rose by about 35 percent in value terms so far in this financial year.
George Alexander Muthoot, MD, Muthoot Finance says the company continues to enjoy 9 percent spreads and adds that it has not lost any capital on non-performing loans (NPLs).
Software was the second most preferred sector with MFs, with an exposure of Rs 29,668 crore, followed by pharma (Rs 19,394 crore), auto (Rs 17,754 crore) and finance (Rs 15,116 crore).
According to Nimesh Shah, In the equity segment, there has been mark to market gains in the industry. If you see the quarterly average of the second quarter of this year and the third quarter of the year, the quarterly average levels of Nifty would have gone up around 7 percent.
Retailing of government securities and other bonds can be another big draw among small investors, National Stock Exchange's MD and CEO Chitra Ramkrishna said.
The quarter numbers released by the Association of Mutual Finds show a fall of 4.5 percent in the assets under management (AUMs). It has been highest since December 2010.
Meanwhile, the AUMs of both equity and debt funds also declined during last month. Equity funds' AUMs fell 4.4 percent to Rs 1.63 lakh crore in July led by outflows as well as mark to market (MTM) losses.
Reliance Capital on Monday posted nearly three-fold rise in consolidated net profit at Rs 133 crore for the first quarter ended June, 2013 on the back of all-round growth.
Sanjiv Shah, ED, Benchmark Asset Management, in an interview with CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, spoke about whether one should participate at this juncture to keep gold as an asset and how one should go about it.