The number of shares invested by mutual fund companies has increased beyond
1000. As of June 30, 2023, mutual funds held a total of 1,023.79 crore shares
of equity and equity-related instruments in India, according to the
Association of Mutual Funds in India (AMFI). This represents a 10.3% increase
from the previous quarter.
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What is the percentage of mutual fund investors in India
The
survey
revealed that the number of stocks invested by mutual fund companies has
increased and this number is close to 1,000.
Mutual fund companies invest in equity and other financial instruments
through various types of funds. It has been found that the number of shares
invested by mutual fund companies has increased.
With the asset value under management of mutual fund companies being over Rs
48 lakh crore, more than half of this is in equity funds, according to an
analysis of data related to mutual fund investment by the trade daily
'Business Standard'.
The number of stocks invested by mutual fund companies was 782 in 2020, and
now it has increased to 983.
The increase in mutual fund holdings is due to a number of factors,
including,
Strong economic growth: The Indian economy is expected to grow at 7.3% in
the current financial year, which is driving corporate earnings growth. This
is making stocks more attractive to mutual funds.
Rising interest rates: The Reserve Bank of
India (RBI) has been raising interest rates in an effort to combat inflation.
This is making fixed-income investments less attractive, which is driving
investors towards stocks.
Increasing investor awareness: Investors are becoming increasingly aware of
the benefits of mutual funds, such as diversification and professional
management. This is leading to an increase in inflows into mutual funds.
Funds seeking new opportunities for investment, cap on equity investment and
monetization nature are considered to be the reasons for this. Smallcap
funds have also been found to attract more investment.
The increase in mutual fund holdings is a positive sign for the Indian stock
market. It suggests that investors are confident in the long-term growth
prospects of the Indian economy. This is likely to support valuations and
lead to further gains in the stock market.