Mutual fund investment has been on the rise in recent times

Mutual fund investment has increased in recent times, leaving deposit funds behind. mutual fund investment has picked up in recent years, leaving deposit funds behind. This is due to a number of factors, including,
 
Mutual fund investment has been on the rise in recent times
mutual fund investment

What are the recent developments of mutual funds?


Rising interest rates, Interest rates have been rising in recent years, making deposit funds less attractive to investors.

Higher returns, Mutual funds have the potential to generate higher returns than deposit funds, as they invest in a wider range of assets.

Increased awareness, Investors are becoming more aware of mutual funds and the potential benefits they offer.

As a result of these factors, mutual fund investment has grown steadily in recent years. In 2022, mutual fund investments in India reached a record high of ₹37.1 lakh crore. This is a significant increase from the ₹14.2 lakh crore invested in mutual funds in 2017.

The growth of mutual fund investment is likely to continue in the years to come. This is due to the factors mentioned above, as well as the increasing popularity of online investing platforms that make it easier for investors to access mutual funds.

However, it is important to note that mutual funds are not without risk. The value of mutual fund investments can go down as well as up, and investors could lose money. Therefore, it is important to carefully consider your investment goals and risk tolerance before investing in mutual funds.

Across six metros and over 18 second-tier cities in India, 64 per cent respondents to a survey conducted by online financial services firm BankaBazaar said they were looking for mutual fund investments. 

The next place is deposit fund investment. For the second year in a row, mutual fund investment is ahead of mutual funds. However, when it comes to financial instruments, it has been found that 77 percent prefer bank savings accounts.

Males have opted for savings accounts more than females. However, this year, women have resorted to mutual fund investments to a lesser extent than men.

The international political environment and inflation over the past two years are considered to be influencing investment decisions.

Here is that shows the growth of mutual fund investment in India over the past five years,

Year Mutual fund investment (₹ lakh crore)

2017 14.2/ 2018 20.3/ 2020 29 / 2021 34./ 2022 37..,

As you can see, mutual fund investment has grown steadily over the past five years. This is a trend that is likely to continue in the years to come.

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