Key Points
Retail investors predominantly invest in equity mutual fundsand, as per data put out by the Association of Mutual Funds in India in December, over 95% of the assets under management (AUM) in debt mutual funds (MFs) comes from corporate entities, while over 90% of equity AUM comes from retail and HNI (high net worth individuals) investors..
First, if you consider overall fixed deposit (FD) volumes, it outstrips the MF industry itself..
Retail investment in liquid and overnight funds is less than 55,000 crore compared to over 23 trillion (as per central bank data) held in current and savings accounts (CASA) in the country..
There are overnight funds for immediately liquidity purposes, there are liquid funds which allow you to park money for up to 3 months, and there are money market funds that help you deploy money for up to 12 months..
However, the process of investing in MFs has become simpler and more streamlined than before and even redemptions of up to 50,000 can be done in liquid funds and overnight funds in a matter of seconds..
You might be interested in
Mutual funds push debt schemes before tax deadline
27, Mar, 23From April 1, capital gains arising from investments in debt mutual fund schemes will be added to taxable income and taxed in line with the income tax slab rate. The government made this unexpected change as part of amendments in the Finance Bill last week.