AHMEDABAD: The return of bulls to stock markets joined by the growing investor confidence in equities has swelled equity mutual funds’ kitty in Gujarat. The assets under management (AUM) of equity-oriented mutual fund (MF) schemes has crossed Rs 1 lakh crore in the state.
Crossing this important milestone in March, the assets of equity mutual funds across Gujarat increased to Rs 1,00,438 crore in April 2021. The AUM grew to Rs 1,00,231 crore in March from Rs 97,068 crore in February, show data compiled by the Association of Mutual Funds in India (AMFI).
Fresh inflows and the increase in the asset value of the existing investments due to a rise in stock markets have helped push up overall AUM of equity-oriented mutual fund schemes, said financial consultants.
“With stock markets remaining on a steady trajectory, investors are now bullish on equities and are readily investing in equity-linked mutual funds. Recent surge in stock markets has cemented the investor confidence further on. With sustained inflows, AUM has touched benchmark level of Rs 1 lakh crore and is expected to remain above this in May as well,” said Jayesh Vithalani, an Ahmedabad-based financial consultant.
Despite the gloom and an overall dampened sentiment triggered by the second wave of Covid-19 infections, momentum in mutual fund investments sustained well in April, according to analysts.
“SIP inflows continued and so did investments from both high networth individuals (HNIs) as well as other retail investors. Besides, there was no withdrawal by investors, unlike what was witnessed since September last year,” Vithalani further added.
Financial consultants also explained that in March and April, salary increments were also given to employees in some sectors and this also fuelled the inflows in equity MFIs.
The overall AUM of mutual funds schemes across all categories stood at about Rs 2.16 lakh crore in both April and March.
The month of March, however, saw optimistic growth in mutual fund investments over February on the back of a good performance by equity and debt oriented mutual funds, said financial analysts.