Investors Put in Record Amounts into Equity-Related Schemes

Key Highlights of this Story

• In recent times, stock markets have witnessed a bullish phase, mainly around 2021.
• Equity mutual funds especially saw a rise in inflow which tallied up to Rs. 91,000 crores.
• In the previous year, however, equity mutual funds had seen a rise of Rs. 9,100 crores.

2021 saw investors put a lot of their money into equity mutual funds, presumably drawn by the substantial gains in the underlying equity market. As a result, the sector introduced 41 new passive funds at Rs. 1.14 lakh crores and 8 new hybrid funds at Rs. 1.02 lakh crores.

Investors Exit Debt Mutual Funds

Debt mutual funds saw a net outflow of Rs. 35,000 crores in the year 2021. Investors did not look too keen to invest in the category as they waited for the Reserve Bank to hike interest rates. However, the Reserve Bank of India did not increase the interest rates, throwing its weight behind growth.

Bottom Line

The equity sector has seen visible growth in the past year. As a result, SIP accounts have also increased in the country. Meanwhile, ETFs gained popularity while liquid funds saw the sheen removed off them and lost grounds.

In conclusion, the year 2021 was a record year in terms of growth for the equity-related sector in India. In the future also, it is expected that the year will be oriented towards equity and will see a great response in equity mutual funds.

Source: The Indian Express

Frequently Asked Questions

1. How many SIP accounts were there in 2021?

Ans. The number of SIP accounts rose to 4.91 crores. This accounts for around Rs. 5.65 lakh crores of the industry assets in December.

2. What was the largest mutual fund category as of 2021?

Ans. The largest mutual fund category as of 2021 is Exchange Traded Funds.

3. How much of the investments was seen in the ETF category?

Ans. Investments to the tune of Rs. 3.84 lakh crore were seen in ETFs.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.