The new calendar year symbolises a new beginning and is a also time to review or rebalance one’s portfolio.
In the last year, many new investors began the equity journey through systematic investments in equity-oriented mutual funds. Retail investors also exhibited confidence in market-linked fixed income products like ‘dynamic bond funds’ and ‘short-term income funds’. According to data from the industry body Association of Mutual Funds of India (Amfi), till September 2017 the retail investor folios in equity funds had increased around 17% and the debt-oriented funds around 5.5%. In the second half of the year, many got lured into trading on the block in cryptocurrencies. So far, this trade does not seem to be backed by fundamentals. Nevertheless, the balance is titled in favour of demand, which gave a strong upwards push to prices.
