Home >Mutual Funds >News >Nilesh Shah on mutual fund investors 'agni pariksha' moment and the lessons learnt
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Indian markets have surged to record high levels, pushing benchmark Sensex from lows in March last year to above 60,000 and Nifty near 18,000. Meanwhile, equity mutual funds have also witnessed record inflows amid the current bull market rally.

The recent inflows in equity MFs have pushed assets under management (AUM) of the mutual fund industry to an all-time high of 36.6 lakh crore at August-end from 35.32 lakh crore at July-end. The systematic investment plan (SIP), popular among retail investors for allowing investment of a fixed amount regularly in schemes, contribution too reached an all-time high at 9,923.15 crore during the period under review from 9,609 crore in July.

Kotak Mahindra Asset Management Company's (AMC) Nilesh Shah recently shared how investors who remained invested even after witnessing negative returns in the past few years, were rewarded with double-digit returns through this bull run. 

“The most important thing is the agni pariksha of SIP Investors in March 2020. SIP returns were negative for three years , low single digit for 5-7 years and mid single digit for 7-10 years. Today's double digit returns are available only to those who remained invested," Shah tweeted.

Many equity mutual funds have delivered stellar returns since last year as Indian markets continued the rally. Also, new investors participated enthusiastically with record new SIPs accounts and demat accounts being registered in the last few months.

Edelweiss AMC CEO Radhika Gupta also in a recent tweet explained what it meant to be invested in MFs to beat inflation during the recent years. “Family member in NCR invested in a property 9 years ago. With great struggle, will finally exit with a 2% IRR. Now wondering, “agar MF mein invest karte toh kya hua hota?" Equities may be volatile in the short term, but remain the way to beat inflation!," Radhika tweeted.

"The other challenge with real estate investments is “what is the value?" In this case they believed the value was X for years but never realised that price. What they realised was 10% lower. The good things about NAVs are they executable!, she added.

Benchmark Sensex stock index registered its quickest 10,000-point run to breach the 60,000 level on Friday, outperforming regional peers. It took the Sensex just 166 sessions to gain its latest 10,000 points, compared with the 414 sessions it took to cover the previous 10,000.

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