Key Highlights of this Story
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
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.
Ans. The largest mutual fund category as of 2021 is Exchange Traded Funds.
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.
Published on: Jan 18, 2022, 10:17 AM IST
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