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Home >Money >Personal-finance >Mutual funds in 2017: The year that was

Our experts tell us about the one event that took place in the mutual fund industry in 2017 and that will have a spillover effect in 2018.

Radhika Gupta, chief executive officer, Edelweiss Asset Management Ltd

Certainly Sebi’s scheme categorization guidelines introduced in 2017 will have a significant spillover effect in 2018 and potentially over a much longer term. The new norms will drive a movement towards true-to-label funds with sharp positioning, leading to potential changes in fund attributes, and provide advisers and investors more clarity in fund selection and decision making

Aashish P. Somaiyaa, managing director, Motilal Oswal Asset Management Co. Ltd

The general macro environment, coupled with after effects of demonetization, resulted in low interest rates. Lacklustre performance across asset classes pushed investors to equity and hybrid mutual funds riding on excellent past performance. As politico-economic policy environment toughens; managing expectations and handholding investors will be a challenge in 2018.

Nimesh Shah, managing director and chief executive officer, ICICI Prudential Asset Management Co Ltd

Highlight of the year was the rising popularity of ‘balanced advantage’ category of mutual funds, which we believe is likely to sustain in 2018 as well. Given the increased appetite among investors for such funds, many fund houses launched their offerings in this category in 2017. Since the market is close to its all-time high, we believe that investors should adopt a cautious approach, which can be achieved through such funds. Here one can take exposure to both equity and debt, based on the relative market valuation, thus aiding risk mitigation.

Kalpen Parekh, president, DSP BlackRock Investment Managers Ltd

The structural trend of mutual funds becoming core part of investors’ savings will continue into 2018 as advisers and investors experience the pros and cons of investing in market-linked investments. Relative underperformance of gold, fixed deposits and real estate sector have accelerated this trend but this cannot be taken for granted.

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