Investor appetite for equities is increasing as the markets scales new highs. The exuberance is evident by the massive inflows into equity funds. AMFI data shows that Rs 19,050 crores (YTD) flowed in to equity mutual funds, excluding balanced, ETFs and ELSS as compared to Rs 8,302 crores in the previous year.
There are two reasons for this encouraging trend. Superior fund performance, coupled with increasing awareness is drawing investors towards mutual funds.
However, you need to tread with caution during these times. Thanks to increased awareness of direct plans, this share class is steadily gaining ground due to the return differential vis-à-vis regular plans.
