As per wealth managers, retail investors holding shares worth less than Rs 2 lakh, as on June 30 do not hold more than 15 lakh shares.
Retail investors continued to invest in equity mutual funds mainly through the SIP route, with as much as Rs 3,200 crore coming in every month.
Liquid funds are used by investors to park their money for short periods of time, typically 1 day to 3 months. There is no entry or exit load by fund houses.
Typically, most investors tend to chase returns while selecting an equity mutual fund scheme, spending a lot of time and debating on past returns.
These funds allocate less to equities when market valuations appear expensive, and increase allocation to equities when market valuations seem cheap.
The price-to-earnings ratio of Nifty is 23.89, a 19% premium to its 10-year historical average of 20.09, which makes many wealth managers advocate caution.
On the MF side, investors have Motilal Oswal Dynamic Equity Fund NFOs and Mahindra MF Kar Bachat Yojana; and among IPOs, 4 offers are lined up for September.
Balanced funds' AUM crossed the key Rs 50,000 crore for the first time owing to consistent inflows for over two years.
Most investors tend to look at last 1-year returns in a mutual fund scheme before choosing one to invest in. A fund which has outperformed its benchmark indices this year may end up being a loser tomorrow.
With the Nifty 50 moving up by 25 per cent and Nifty Midcap 50 rising by 35 per cent in a span of 6 months, stock picking has become difficult.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon