Equity mutual fund managers often keep cash reserves to handle market conditions and investor needs.
Fund managers hold cash in equity schemes for various reasons, including market overvaluation, difficulty finding quality stocks, and to meet daily redemption requests. Cash provides a buffer against downside risks in volatile periods.
Twelve equity mutual funds in India have achieved net asset values exceeding Rs 1,000, delivering up to 24% compound annual growth rates since their inception. Eleven of these funds have operated for more than 25 years, providing consistent double-digit returns amid market ups and downs. This performance underscores the value of long-term investment strategies for patient investors.
Imeripotiwa na AI
Retail investors put ₹38,440 crore into equity mutual funds last month, a modest decline from March levels. The dip occurred amid uncertainty over oil prices and lower SIP collections.
Foreign institutional investors (FIIs) poured Rs 22,615 crore into Indian stocks during February, showing strong buying interest. However, escalating geopolitical tensions between Iran and Israel have raised concerns about the sustainability of this trend. Experts suggest that FIIs might pause new investments to monitor the situation.
Imeripotiwa na AI
A recent study highlights that a majority of Indian women investors, particularly those with lower incomes, favor systematic investment plans (SIPs) in mutual funds over lump-sum investments. Conducted by The Wealth Company, the research indicates growing participation by women in formal investing, though they still represent about 26% of unique mutual fund investors. The findings underscore the need for enhanced support within the financial ecosystem to encourage women's involvement.