Rs 9,152 crore: Equity mutual funds received inflows of Rs 9,152 crore in August, 13 per cent higher than in the previous month.
- This was despite a negative return of -0.17 per cent delivered by the Sensex that month.
- Year to date (till August end), the Sensex was up 3.51 per cent but the S&P BSE Midcap (-12.77 per cent) and S&P BSE Small-cap (-14.77 per cent) were deeply in the red.
- Experts attribute the positive inflows into equities to growing maturity of retail investors who have continued with their systematic investment plans (SIPs) despite the markets tumbling. Each SIP buys more units when the equity market is down, which helps boost returns over the long run.
- In fact, experts say, investors have even made lumpsum investments to take advantage of valuations that are becoming more attractive.
- Flows into midcap and small-cap funds were also higher than in the previous month, though these categories have taken a harder knock.
- With outperformance over the benchmark declining in large-cap funds, investors appear to be allocating money to mid- and small-caps due to their ability to deliver alpha over the long term.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
NUMBER OF THE WEEK
Rs 10,000: Enhanced withdrawal limit allowed by RBI to customers of PMC Bank.