stock market
In the month of June, Indian investors have placed huge bets in the stock market. The latest data from the Association of Mutual Funds in India (AMFI) has completely made the mood of the market clear. On one hand, investors have made a huge investment of Rs 28,973 crore in equity (share based) mutual funds, while on the other hand, there has been a huge withdrawal of Rs 1.09 lakh crore from debt (debt based) funds giving fixed returns. Along with this, Gold ETFs which had faded last month have also made a great comeback this time.
Increasing trend of investors towards stock market
In the month of May, investors were a little cautious about investing money in the market, but by June this hesitation was broken. AMFI report shows that there has been a net investment of Rs 28,973 crore in equity mutual funds in June. This figure is much better than Rs 22,908 crore in May. However, if we compare it with March (more than Rs 40,000 crore) or April (more than Rs 38,000 crore), then this investment may seem a little less. Nevertheless, this is a direct sign of strong confidence returning to the market. With this new investment, the total asset under management (AUM) of equity funds has also increased by leaps and bounds. In May it was Rs 36.14 lakh crore, which increased to a record level of Rs 37.34 lakh crore by the end of June.
The real reason for disillusionment with debt funds
While on one hand there is a race to invest money in shares, on the other hand the condition of debt mutual funds seems to be in bad shape. For the second consecutive month, investors have pulled out a large amount of their money from this category. If we look at the figures, there has been a net withdrawal of Rs 1.09 lakh crore from debt funds in June. Earlier in May also, investors had withdrawn approximately Rs 96,949 crore. This continuous heavy selling has had a direct impact on the AUM of debt funds. This figure has fallen from Rs 18.25 lakh crore in May to Rs 17.38 lakh crore. This makes it clear that investors are currently considering it better to stay away from this category.
The shine of gold attracted again
The month of June also brought a big change for gold investors. In the month of May, a withdrawal of Rs 725 crore was seen from Gold ETF (Exchange Traded Fund), which showed that people’s interest in gold was decreasing. But, in June the tables turned completely. Investors increased their stake in gold and made a new investment of Rs 3,443 crore. This is proof that even though people are taking stock market risks, they are also betting on gold to keep their portfolio safe. Similarly, investors’ interest in hybrid funds with balanced risk also remains intact. It received investment of Rs 12,893 crore in June, which is more than Rs 10,560 crore in May.
Status of investment in other schemes
Some other schemes also attracted the attention of investors. Solution-oriented schemes recorded a net investment of Rs 321 crore, while other miscellaneous schemes brought in Rs 16,724 crore. In contrast, investors did not show much interest in closed-ended and interval schemes and there was a withdrawal of Rs 2,794 crore from here.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
