Top Wealth-Creating Funds
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund
Amidst all the negatives facing the global economy and the financial markets, the Indian mutual fund industry looks like an ‘oasis’ if we go by the SIP money flow and the new investors added in the month of January this year.
Amidst all the negatives facing the global economy and the financial markets, the Indian mutual fund industry looks like an ‘oasis’ if we go by the SIP money flow and the new investors added in the month of January this year. The new investors count increased to 3.70 crore i.e. an addition of 3.41 lakh MF investors in January. Investors have continued to show faith in mutual funds as is reflected by the monthly SIP flows of ₹13,856 crore in January. What is even more interesting to know is that 23 per cent of the total SIP flows have been invested through the direct channel.
Noticeably, this is now the fourth consecutive time that monthly flows have exceeded ₹13,000 crore. It will not be incorrect to say that the strong MF SIP flow has become a source of stability for the Indian equity markets. Going forward, the positive momentum of SIP investments is expected to continue in 2023. SIPs are popular because of their track record of creating wealth in the past. Talking about wealth creation in this anniversary issue cover story, we have focused on the top 15 mutual funds that have created maximum wealth in the past five years.
It is always interesting to study the past performers and understand the strategies adopted by these winners. Past performance, while not an indication of future performance, talks a lot about the successful investing strategies adopted by consistent performers. Do share your thoughts on our cover story. With rising interest rates, a direct impact is seen on fixed deposit rates. In our special story we have discussed at length how and why a Debt Fund can offer you better return potential over a fixed deposit.
Mutual fund investing in India is getting interesting as more and more people are willing to join the incredible journey of wealth creation. However, to make it a fruitful journey it is important to be an informed investor and adopt the best MF investment practices. The trick is to avoid mistakes and adhere to a financial plan which will help you achieve your both short-term and long-term financial goals objectively. We would advise you to stay away from the noise and commotion that usually surrounds the mutual fund market. Rather, focus on the reasons why you would like to invest in MFs and the returns. That will make your journey easier!
Yogesh Supekar
Executive Editor