Investment Tips: Neither FD nor bank deposit, people are investing money here for 9-12% annual return..

People's interest in the stock market is increasing as compared to banks and other savings schemes. Year after year, people are investing more and more money in mutual funds. In the quarter ended June 2024 of the current financial year, investment in equity mutual funds has increased fivefold to Rs 94,151 crore. This figure was Rs 18,358 crore in the same quarter a year ago. Amid a strong economic environment, better government policy, investor confidence, and a boom in stock markets, retail investors have become more attracted to equity mutual funds. Recently, the RBI governor also said that people are preferring to invest in shares instead of banks. This may affect the deposit growth of banks.

According to data from the Association of Mutual Funds in India (Amfi), the assets under management (AUM) of the industry grew 59 percent to Rs 27.68 lakh crore in June from Rs 17.43 lakh crore a year ago.

What is the reason for investing in mutual funds?
With strong growth in the asset base, the number of investors in equity mutual funds has also increased. During this period, the investor base has increased by three crores and the number of folios has increased to 13.3 crores. Trivesh D, COO of stock trading platform Tradejini, told PTI that the increase in the number of equity portfolios shows that participation in various investor segments is increasing in a big way. This is due to financial awareness and easy access of people to investment platforms.

According to Amfi data, equity-based mutual fund schemes received an investment of Rs 94,151 crore in the quarter ended June 2024. In April, these schemes invested Rs 18,917 crore, Rs 34,697 crore in May, and Rs 40,537 crore in June.

What is the average annual return of mutual funds?
Investment in mutual funds is subject to market risks, so the annual return obtained from it keeps changing. However, historically the average annual return has been around 9% to 12%.

Anand Rathi Wealth Deputy CEO (Chief Executive Officer) Firoz Aziz said that the attraction towards equity mutual funds is increasing due to the strong economic fundamentals of the country, favorable fiscal policies of the government like higher tax collection, lower revenue expenditure, and higher capital expenditure.