Mutual funds have seen rapid growth in assets under management, as Indians move from physical savings to financial savings, leading to a shortage of talent pool and subsequent churn in personnel.
Wealth managers believe investors find rates above 8% attractive to lock in and some money is shifting from debt fund categories which fared poorly in the past one year.
As par data, fund houses hold NBFC stocks worth Rs 39,000 crore at the end of May 2018.
Retail investors have taken to investing using SIPs in a big way over the last three years.
In May, mutual fund managers armed with money from SIP flows made purchases selectively.
Post April 1, investors are increasingly opting for systematic withdrawal plan over dividends in mutual funds.
Exchange Traded Funds (ETFs) also score over actively managed funds on the cost front.
Fund managers believe that share valuations of the pharma sector are cheap.
"If you want to wait for India to be cheap to buy it you will never get an opportunity."
While FDs are not listed and nontransferable, company deposits are illiquid and tax inefficient.
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