HDFC Top 200, which manages Rs 11,718 crore, is up 17.3%, the top gainer in the large-cap fund category.
To strike a chord with investors, mutual funds have gone one step ahead with some smart branding like children’s education and retirement funds.
Among banking stocks, fund managers continued to prefer retail banks over their corporate peers and continued to add HDFC Bank to their portfolio.
Investors looking to invest in equity mutual funds but not confident about the abilities of the fund manager typically invest in index funds.
Indian markets are in a euphoric mood on good numbers and expectations of a normal monsoon, said Anoop Bhaskar, head (equities), IDFC Asset Management.
India is one of the best equity stories globally over the medium term, and we are overweight, said Christopher Chen of Mirae Asset Management Company.
Before the rate cut on small savings and post office time deposits were announced, a 5-year time deposit from the post office paid 8.5% every year.
Officials said the reason for the steep outflows from the category is redemption from arbitrage funds and from schemes where money was parked for dividend stripping.
“The debt component consistently delivered 9-10%, while equities lagged behind which helped outperformance,” says Rupesh Bhansali, Head (Distribution), GEPL Capital.
“Investors redeemed from arbitrage funds and from select equity schemes which were used for dividend stripping,” said the CEO of a large domestic fund house.
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