Are equity MFs losing flavour?

Most smart investors over the years have credited equities over debt instruments, as the reason for their success as investors. But, are equity Mutual Funds (MFs) loosing it's ground?

FP Staff May 15, 2013 12:07:09 IST
Are equity MFs losing flavour?

Most smart investors over the years have credited equities over debt instruments, as the reason for their success as investors. But, are equity Mutual Funds (MFs) loosing ground?

According to a report published in Business Standard today, one million equity folio close during January -April. In fact April saw the highest number of equity folio closure, the number stood at 264,000. This is because, a large number of investors choose to book profits since Sensex hit 20,000 mark, and Nifty too crossed 6000 mark.

Are equity MFs losing flavour

a large number of investors choose to book profits since Sensex hit 20,000 mark. AFP

The report also said, "Despite a recent bull run in the stock markets, retail investors accessing equities through mutual funds chose to close their accounts and exit investments." However, towards the end of April, there was some positive traction of over Rs 750 crore in several months, amid rising sales. Read full story in Business Standard today.

What you should do: The story also mentioned that risk appetite among retail investors is all time low. We think, it's important that your portfolio has a good amount of diversification, based on your age-based asset allocation and individual risk profile.

And SIP route of investing works well, for regular investors. Don't follow market trends blindly, which means, don't sell simply when everyone is selling and don't buy simply when everyone is buying. Read more about that here.

Updated Date:

also read

Market Roundup: Sensex declines 364 points, Nifty falls below 16,400; check top gainers and losers
Business

Market Roundup: Sensex declines 364 points, Nifty falls below 16,400; check top gainers and losers

Concerns have risen among investors as COVID-19 cases continue to surge in China

SBI fourth quarter net profit jumps 41% to Rs 9,114 crore
Business

SBI fourth quarter net profit jumps 41% to Rs 9,114 crore

The gross NPAs of the bank declined to 3.97 per cent of gross advances as on 31 March, 2022, as against 4.98 per cent by the same period of 2021

PVR reports Q4 net loss of Rs 105.49 crore, revenue at Rs 537.14 crore
Business

PVR reports Q4 net loss of Rs 105.49 crore, revenue at Rs 537.14 crore

The company had posted a net loss of Rs 289.21 crore in the January-March quarter a year ago, PVR said in a BSE filing.