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SIPs Steady: India's Mutual Funds Defy Market Volatility
26 Jun
Summary
- Equity fund inflows and SIP contributions saw a dip in May.
- Fund house remains bullish on small and mid-cap segments.
- Company aims to grow AUM to ₹8 lakh crore in three years.
Equity fund inflows experienced a 40% decrease in May, with SIP contributions also showing a slight decline. However, overall flows remain stable, with SIPs consistently contributing around ₹31,000 crore monthly. Despite market volatility and geopolitical uncertainties, mutual funds are highlighted as a stable investment avenue compared to direct equity or F&O trading.
The fund house expresses a bullish outlook on small and mid-cap funds, actively promoting specific schemes. They note a rising number of companies in these segments and emerging new-age businesses. The strategy includes advocating for multicap funds with significant exposure to mid- and small-caps, expecting substantial earnings growth from these companies.
Currently, equity constitutes about 48% of the firm's assets. Looking ahead, the company targets an AUM growth from ₹4.6 lakh crore to ₹8 lakh crore over the next three years. This ambitious goal will be pursued through enhancing the equity portfolio, expanding the SIP book, investor education, and strengthening distribution networks.
