Tricky times lie ahead for Mutual Fund investors. The NIFTY closed past the 10K mark, the 10-year G-Sec yield has already dropped nearly 150 bps in the past year and a half (this is good for long term debt funds), and credit spreads have already compressed significantly in recent times.
With AMFI’s ubiquitous ‘Mutual Fund Sahi Hai’ campaign making waves, and the levels of retail awareness increasing, the industry has witnesses stellar inflows in debt and equity oriented funds alike, off late. It is estimated that the retail folio count now stands at 52.31 million, with new ones being added every day. Nearly half of all equity inflows in the last fiscal happened through the SIP route, further underscoring the burgeoning levels of retail interest in the product. Phrases like ‘inflection point’ and ‘quantum leap’ can be heard frequently.
Positive sentiment and impressive business numbers notwithstanding, a few points are worthy of consideration at this stage.
