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Mint
30-05-2025
- Business
- Mint
Investment of mutual funds in NSE firms touches a record high of 10 per cent: Report
The ownership of mutual funds (MFs) in listed companies scaled a record high of 10 per cent in fiscal 2025 and indicated the first double digit reading. In the March quarter, mutual funds infused ₹ 1.9 lakh crore into equities, contributing to a record annual net inflow of ₹ 6.1 lakh crore, reported Hindu Business Line. Passive funds within mutual funds also hit a peak share of 2 per cent. Individuals' holding, directly and through mutual funds, remained steady at a record high of 18 per cent of the market with a current holding of ₹ 74.5 lakh crore, a compounded annual growth rate of 17 per cent over five years, according to the NSE Market Pulse report released on Thursday. However, individual investors' direct ownership dipped to 9.5 per cent, suggesting growing popularity of MFs as a preferred vehicle for equity investment by retail investors. Akshat Garg, AVP, Choice Wealth, said individual investors are increasingly channelling incremental money into mutual funds and the shift has been structural, not cyclical, wrote Business Line. The surge in SIP flows, especially from tier-II and -III cities, reflects growing investor maturity, but at the same time, direct equity investing has become more volatile and time-consuming, prompting retail investors to delegate that complexity to fund managers, he added. Strong performance of Indian equities, coupled with rising participation, has resulted in a significant increase in household wealth over the last few years. 'Our estimates suggest that the household wealth in Indian equities increased by over ₹ 46 lakh crore in the last five fiscal years,' said the report. Since June 2021, with a strong SIP-led inflows, MF ownership in NSE-listed firms has climbed steadily, reaching all-time highs. Meanwhile, investors pumped money into debt mutual funds in April as they sought lower-risk options to ride out the market volatility and to rebalance their portfolios at the start of the financial year, taking net inflows into these funds to the highest in over two decades. Net inflows into debt-oriented open-ended mutual fund schemes were at ₹ 2.19 trillion in April—the highest since January 2005, from when this data is available. The net inflows marked a sharp reversal from March, when debt-oriented schemes witnessed outflows of ₹ 2.02 trillion. For all personal finance updates, visit here
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Business Standard
30-04-2025
- Business
- Business Standard
Sell stocks in May and go away? Here's what analysts suggest you do
The 'Sell in May and Go Away' adage may not be a good strategy for Indian investors this year, as the markets approach May 2025 amid mixed global signals, geopolitical tensions with Pakistan, and an ongoing corporate earnings season. While uncertainties around India-Pakistan relations following the Pahalgam terror attack have turned investors cautious, resilient domestic fundamentals such as stable GDP growth, in-line corporate earnings and revival in foreign inflows suggest that exiting equities may not be the best move. In this backdrop, analysts believe that a selective and sector-specific approach will likely yield better results over the next few months. That said, experts suggest that fundamental drivers are much stronger this year compared to the periods when the adage might have worked. The adage, Akshat Garg, assistant vice president at Choice Wealth, says is based on historical data suggesting stocks tend to underperform in the months from May to October compared to November to April. However, this pattern is not consistent across all indices or periods. Garg suggests investors should follow a nuanced approach based on current market fundamentals and global economic conditions instead of blindly following the adage. "Staying invested with a focus on quality stocks, diversification, and monitoring key economic indicators is advisable," he added. Echoing similar views, Aamardeo Singh, head of research at Angel One, said, "India's growth outlook remains steady, corporate earnings are resilient, and domestic liquidity continues to support the markets. Rather than exiting, investors should stay selective and focus on opportunities in sectors like financials, manufacturing, and domestic consumption plays." The progress of the monsoon, corporate earnings momentum, rural demand trend, crude oil price movements and the impact of RBI's recent measures will be the key factors to watch in the coming months, analysts said. The revival in foreign portfolio investor (FPI) inflows – if it sustains – will act as another booster for market sentiment. After witnessing significant FPI outflows earlier this year, FPIs have infused over ₹32,465 crore into Indian equities over the past eight trading sessions, signalling a revival in foreign investor confidence despite geopolitical tensions. This renewed interest Saurabh Patwa, head of research and portfolio manager at Quest Investment Advisors said, is partly driven by India's favourable positioning amid global trade realignments and a weakening US dollar, both of which are enhancing the relative attractiveness of emerging markets like India. However, Patwa also advises caution at the sector level. "The Indian IT services industry now faces twin headwinds including a potential slowdown in developed economies and structural disruption from artificial intelligence (AI) adoption. While valuations have corrected and offer selective opportunities. At the stock level, the ongoing Q4-FY25 earnings season will be a key driver of near-term market movements. So far, performance has been mixed as large private sector banks have reported better-than-expected results but consumer staples companies have delivered muted numbers," he said.
