Investors in Punjab Have Seen Value in Equity-Oriented Schemes: Tata Asset Management

Investors in Punjab Have Seen Value in Equity-Oriented Schemes: Tata Asset Management

Ludhiana, June 30, 2024 (News Team):
According to the Association of Mutual Funds in India (AMFI) data, the equity mutual funds have hit a record high of net inflows to the tune of INR 34,697 crore in May 2024, witnessing an 83% jump over April 2024. The same month's AMFI data suggests that within the equity mutual funds segment, the thematic or sectoral funds category saw highest inflows of INR 19,213.4 crore from investors across the country. Another interesting takeaway from the May 2024 AMFI data is that the monthly investments via SIPs crossed the INR 20,000-crore mark for the second successive month.

The size of mutual funds (MF) assets has continued to grow in India, as investors have reposed their faith in various equity schemes. Tata Mutual Fund witnessed a similar trend in Punjab, where investors have shown preference for its equity mutual fund schemes. Investors in Punjab have invested INR 188 crore from Jan-Apr 2024 in various equity schemes of Tata Mutual Fund (including its Arbitrage Fund), of which INR 98.3 crore came from investors in Ludhiana, followed by Amritsar and Chandigarh where investors invested INR 38 crore and INR 7 crore, respectively.

Interestingly, during Jan-April 2024, investors in Punjab invested INR 45.7 crore in Tata mutual fund's Arbitrage fund, INR 18.2 crore in Digital India fund and INR 3 crore in India Consumer fund.

Latest AMFI data showcases continued interest amongst pan-India investors in mid- and small-cap segments. The mid-cap and small-cap indices have outperformed the large-cap index in the 1-year period. Going by the May 2024 AMFI data, mid-cap funds recorded net inflows of ₹2,724.67 crore, while small-cap funds saw ₹2,605.70 crore in net inflows in May 2024. On the other hand, with a net inflow of INR 663 crore, investor interest in large-cap funds was bit tepid. The broader market is likely to be more balanced going forward with risk-reward in large-caps becoming relatively attractive.

Sonam Udasi, Senior Fund Manager, Tata Asset Management said, “The macroeconomic indicators, broad-based corporate earnings growth and robust health of the corporate sector are the key factors contributing to long term positive trend for the markets. India is on its way to double its per capita income to ~US$5000 by 2031, with the middle-class driving ~53% of the incremental consumption. India's consumer market too is likely to more than double in this period. As more women join the workforce, we expect quite a few consumer segments to triple in size over the next decade led by food processing, consumer appliances, eating out and ready to eat themes. The equity markets are likely to reward earnings from here on. It is recommended to continue to use the SIP route to invest for the long term.”

According to the AMFI data, as of May 2024, the average industry AUM of investors from Punjab stood at INR 29,188 crore in May 2019 and INR 70,234 crore in May 2024, with an absolute growth rate of 141% over the past five years. While Tata Asset Management has a network of 100 branches across India, it has 06 branches in Punjab.
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