Pharma and IT Funds Back in The Reckoning
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund
Amidst the festive celebrations, the Indian stock market experienced some turbulence with a sudden dip in broader market indices.
Amidst the festive celebrations, the Indian stock market experienced some turbulence with a sudden dip in broader market indices. However, there are underlying factors that continue to support the growth of the Indian economy and the equity market. The Association of Mutual Funds in India (AMFI) recently released data for August 2023, revealing a significant surge in inflows into equity mutual funds, reaching `20,245 crore. This marked a remarkable 165% increase compared to July 2023, reaching a five-month high and signifying a renewed sense of confidence among investors. Moreover, the total number of mutual fund folios reached an all-time high of 15.42 crore in August 2023, compared to 15.14 crore in the previous month. While this enthusiasm is encouraging, it's crucial for investors to assess their risk tolerance to select suitable funds.
In this environment of increased systematic investment plans (SIPs) and growing optimism surrounding mutual funds, two sectors that have reemerged as attractive options are pharmaceutical and information technology (IT) funds. Following the challenges posed by the COVID-19 pandemic, these sectors have faced a demanding period. However, recent developments have turned the tide in favour of these sectors and the mutual funds investing in them. Our cover story explores the reasons behind this resurgence while also highlighting potential concerns.
As discussions on topics like clean energy, green initiatives, and climate change become more commonplace, our special report delves into the significance of investing in these areas. In a global landscape where issues like social inequality and corporate governance take centre stage, environmental, social, and governance (ESG) criteria have become integral in investment decision-making. We delve deep into this critical theme.
With a range of engaging topics covered and pertinent questions addressed, we hope this edition provides valuable insights. Your feedback is always appreciated.
Shashikant Singh
Executive Editor