Ever since industry regulator Securities and Exchange Board of India (Sebi) embarked upon a path of reforming and re-energising the mutual fund Industry, there have been speculations about exactly which way the industry is going.
The year 2012 was about walking the tightrope in managing inflation and growth with more focus on inflation, as the headline WPI number hovered in the 7.5 per cent range.
The fortunes of the equity basket of mutual funds are dependent on the equity market.
Exchange-traded funds or ETFs are slowly gathering pace in India, having unique advantages over other mutual funds, such as lower cost and giving investors the convenience of intra-day purchase and sale on the stock exchanges to take advantage of the prevailing price.
In 2012, expectations of a rate cut by RBI that could have translated into good returns for debt fund investors were kept on hold due to sticky inflation. Aggressive
For those who have invested in overseas-focused mutual funds, this year may look disappointing compared with the performance of the local stock market, which gave over 26 per cent returns year-to-date.
After a long time, equity mutual fund investors are sitting on healthy profits, following the huge rally in January 2012, and then again, in the September-December period.
One set of people who can easily be classified as the most optimistic ones on Dalal Street are the mutual fund managers.
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