The Indian markets are in the spotlight and the numbers reflect the growing investor confi-dence. Mutual funds, in particular, have become a popular investment means among new as well as seasoned investors.

As per the AMFI report for July 2022, a net inflow of Rs. 8,898 crores came in through equi-ty oriented funds in the month of July 2022. Of this, Rs. 7,635 crores were brought in by Ex-change Traded Funds (other than gold) alone. It is easy to surmise from the above figures that the interest in equity investing is on the rise. Thinking about joining the party? Here are the top 5 Mutual Fund trends you could look into to give your portfolio and your goals the acceleration they need:

1. Exchange Traded Funds:

   ETFs are relatively new in India, but are gaining popularity. ETFs other than gold attracted Rs. 7,635 crore net inflow in July 2022. They are high-ly favoured investment instruments in developed countries for their convenience and ease. Like stocks, these funds can be traded on an exchange i.e. bought and sold at any time during trading hours by the investor directly. Also, since they just mimic a particular index to follow the market movement, they are cost efficient too.
   One of the biggest features of ETFs is their wide variety. You can thus invest in sec-tors or issues you truly believe in, without having to churn out a lot of money.

2. Index Funds:

   With the market doing so well in the last two years, index funds are garnering a lot of attention. Index Funds had the second highest net inflow of Rs. 6,779 crore in July 2022. These funds are devoid of any active management; they simply go with the market flow by replicating the market indices. Thus, they rely sole-ly on the collective wisdom of the market.
   
   Also Read - Index Funds Meaning

3. Small Cap Funds:

   After Index funds, the biggest net money inflow came in Small Cap Funds (Rs. 1,779 crore) in July 2022. Perhaps the pull for this fund suggests that there is a growing in-terest in riskier investment avenues with the potential for higher returns. These funds invest in smaller companies that can become large caps of the future. They give your money the optimum opportunity to benefit from economic growth.
   
   Also Read - How to Invest in Mutual Funds?

4. Flexi Cap Funds:

   While there is interest in small cap funds and ETFs, Flexi Cap funds continue to remain a preferred choice, attracting Rs. 1,381 crore in net inflow in July 2022. The fund’s flexible blend of caps can have the potential advantage of large cap stocks, as well as the scope for long term growth in mid and small cap stocks. Active fund management by experienced fund managers gives you a chance to beat the mar-ket and get reasonable returns on your investments.  

   

5. Mid Cap Funds:

   With the latest trend of investors seeking high risk, high return in-struments, mid cap funds are slowly coming into the limelight. In July 2022, these funds brought in net inflow of Rs. 1,244 crores. They invest in known mid cap com-panies that are on the growth path and tend to generate higher returns in a growing economy.
   Also Read: Benefits of Investing in Mutual Funds

With so much happening on the global level, such expanding Indian markets are a positive sign. This is a time of opportunities and growth. Investors have also caught on to this senti-ment as many are slowly opting for actively managed funds, with an aim to beat the market. This can be a great time for your investments; strike while the iron is hot and make the most of what is undoubtedly a promising time for the Indian market and economy.

Reference Links:
https://portal.amfiindia.com/spages/amjul2022repo.pdf

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.