Investors disillusioned with Equity Mutual Funds, investment decreased by 68%, are people putting more money in FD? – decreased investment in equity mutual funds people investing in fds

AUM stood at Rs 41.61 lakh crore

According to data from the Association of Mutual Funds in India (AMFI), the total asset under management stood at Rs 41.61 lakh crore. Whereas in March it was Rs 39.42 lakh crore. During this period, investors took a ‘watch and wait’ approach to invest in various investment options. Overall, the mutual fund industry, comprising 42 companies, also saw a tremendous recovery with investments worth Rs 1.21 lakh crore in April. Smallcap funds saw the highest inflow of Rs 2,182 crore in the equity funds category. After that, an inflow of Rs 1,791 crore was recorded in midcap funds.

Massive investment in debt funds

At the same time, investors invested in debt funds on a large scale in April. There has been huge inflow mainly in bond based schemes. In these schemes, an investment of Rs 1.06 lakh crore has come in April after the withdrawal of Rs 56,884 crore in March.

Best Performance of Debt Funds (in Rupees)

Liquid Funds: 63,219 Crore

Money Market Funds: 13,961 crore

Ultra Short Duration Funds: 10,662 crore

Overnight Funds: 6,107 crores

Rich people preferring FDs

Due to recent tax changes and rising interest rates, High Net Worth Individuals (HNIs) in India are preferring bank Fixed Deposits (FDs) over debt mutual funds. According to a report by Motilal Oswal Financial Services, with mutual funds becoming increasingly commoditized, AIFs and PMS are also the preferred choice of HNIs. Nitin Agarwal, Head of BFSI, Motilal Oswal Institutional Equity, said that the interest rate on bank deposits has increased sharply in the last one year and in such a situation, HNIs have turned to FDs instead of debt mutual funds. Whereas HNIs failed to maintain investment in SIPs (Systematic Investment Plan) due to low returns.