Investors are becoming disillusioned with Mutual Funds!

Mutual Funds: Due to excellent returns in mutual funds in the last few years, the number of new investors is continuously increasing. However, an important thing is coming to light regarding equity mutual funds. Investment in this has declined by 16 percent to Rs 22,633 crore in March as compared to a month ago. AMFI, the body of mutual fund companies, released the figures for the month of March on Wednesday. According to the data, the trend of net inflows into equity funds continued for the 37th consecutive month i.e. in March. According to the Association of Mutual Funds in India (Amfi), the mutual fund industry overall saw inflows of Rs 1.2 lakh crore in February, while there was a massive outflow of Rs 1.6 lakh crore in March. The main reason for this withdrawal was that Rs 1.98 lakh crore was withdrawn from debt-based mutual fund schemes.

What do the figures say?

According to data released by the Association of Mutual Funds in India, equity-based mutual fund schemes saw inflows of Rs 22,633 crore in March compared to Rs 26,866 crore in February. Net investment was recorded in all categories of equity schemes except small cap funds. Net assets under management of mutual fund companies stood at Rs 53.4 lakh crore last month compared to Rs 54.54 lakh crore at the end of February.

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What is equity mutual fund?

Equity mutual fund is a type of mutual fund that invests mostly in equity or share market. The main objective of these funds is to provide profitable opportunities to the investors by investing their capital in various companies of the stock market. One of its specialties is that investment of 12 months is also considered as long term investment. These mutual funds can invest in different segments of the stock market such as large cap, medium cap and small cap companies. These allow investors to invest in various local and international stock markets, thereby diversifying their portfolio. To understand equity mutual funds properly, investors should be well aware of their objectives, investment strategy, fund manager, and history. For this, help of an expert should be taken.