Match-making: Millennial Investors and Mutual Funds
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund
The month of November was abuzz with several companies going public via initial public offering (IPO). But what caught our attention in this humming was the interest shown by fund houses to grab a pie in these newly listed companies.
The month of November was abuzz with several companies going public via initial public offering (IPO). But what caught our attention in this humming was the interest shown by fund houses to grab a pie in these newly listed companies.
Recent data shows a significant uptick in domestic mutual funds' engagement during Tata Technologies' IPO's anchor round. This trend signals the willingness of fund houses to invest in emerging opportunities for potential growth. Moreover, fund houses are also actively introducing New Fund Offers (NFOs), with five NFOs currently available for subscription. Notably, millennials are spearheading new investments in mutual funds, indicating a shifting trend in investor demographics. What is also worth noting is that in contrast with what one would expect, more than 90 per cent of millennials chose advisors or distributors to invest in MFs for the first time. Only 5 per cent of first-time millennial MF investors entered the market on their own.
Our cover story for this issue focuses on millennial investors, whose preferred investment avenue has been mutual funds. Millennials face distinct financial challenges and opportunities compared to earlier generations. Many grapple with burdensome student loan debt, escalating living expenses and uncertain job prospects. However, they possess the advantage of time for long-term financial planning and investment. Our story presents the essential financial planning tips tailored for millennials to navigate these financial landscapes effectively.
As index funds have become the talk of the town, one of our special report highlights this juggernaut. Investors often wonder if they should consider index funds as their go-to option for investing. However, the question arises: why opt for index funds over active mutual funds when both choices are available? The article clears the confusion.
With a plethora of interesting topics covered, we hope this edition provides you with insightful supervision in the world of mutual funds.
Shashikant Singh
Executive Editor