Entering 2024, the Indian equity market promises an exciting landscape for budding investors, with the mutual fund sector offering a spectrum of opportunities for wealth creation.
In a five-year horizon, the SIP investments in the scheme offered an XIRR of 26.80% compared to 19.02% by its benchmark (S&P BSE Teck TRI). In the three-year horizon, the SIP investments in the scheme offered 19.16% returns compared to 12.69% by its benchmark (S&P BSE Teck TRI).
The gross buy-to-sale ratio of local funds rose to 1.12 in January compared with the long-term average of 1.07. The latest investment figures suggest that the inflow for mutual funds remained strong in January. The data on inflow will be reported by the Association of Mutual Funds in India (AMFI) on Thursday.
Feroze Azeez, Deputy CEO of Anand Rathi Wealth, believes that the upcoming budget will focus on Pragati (progress) and will allocate significant funds to home affairs, rural development, agriculture, and defense exports. He suggests investing in an SBI infrastructure fund for those interested in the infrastructure sector. Azeez praises the simplicity and under-commitment of the interim budget, which includes tax simplification and capital gain simplification.
Usually, NFOs come during a surging market when investor sentiments are high and optimistic. The NFOs were floated to capitalise on the mood of investors and attract their investment as they were willing to invest at that time.