CEO Speak

According to the latest AMFI data, the average AUM of the Indian Mutual Fund Industry stood at Rs 24.52 lakh crores as of January 31st 2019. The total number of accounts (folios), interestingly, increased to 8.10 crores which is the 56th consecutive month in which the number of folios has increased. While the industry in general and the equity markets in specific remain volatile and rather shaky amidst the back drop of multiple geo political developments, we see many investors remaining calm and patient with their investments as they know that their long term financial goals will not be derailed by fluctuating market cycles.

With the objective of helping retail investors understand their investment goals, L&T Mutual Fund launched the L&T Child’s Education Calculator, which will help investors remain goal focussed in spite of varied market scenarios over a long time horizon. Our Child’s Education Calculator is focused on better understanding of the amount parents need to save for their children for them to pursue any of the mainstream careers, for both domestic and international education. The calculator is user friendly and gives you the amount you would need to save through either lump sum, or SIP based on the number of years available to the goal.

Click here to access the calculator

We also recommend that whatever may be your financial goal whether short term or long-term, one must assess one’s risk appetite and then allocate you assets towards various financial products. At L&T Mutual Fund we follow a proprietary investment process – G.E.M model. It involves Idea Generation, Evaluation, and Manufacturing & Monitoring of portfolio. Our competent research team rigorously examines an investment opportunity based on multiple parameters such as management track record, corporate governance, growth prospects, valuations, etc. before considering for inclusion in the portfolio. Hence, we firmly believe that the broad investment strategy must not change with political uncertainties and geopolitical events.

If we look at the history of the Indian stock markets and now we have enough of data through multiple market phases which have ranged from neutral to extreme directions either ways, we find that investors who have followed a consistent approach to investment have created wealth. And mutual funds have been instrumental for a large section of retail investors in creating their wealth. Another positive sign of the mutual fund industry has been the growing number of folios as mentioned at the beginning.

This means two things according to me:

  • More and more retail investors are exploring mutual funds as a viable investment asset class
  • There is a lot of scope of penetration for the whole industry at a geographic level, where all mutual fund houses have to scope out the potential in the un-penetrated or under penetrated locations and work on investor education to garner more and more investors showing faith in mutual funds.

The industry regulating body as well as all the stake holders have implemented many investor friendly regulations in order to ensure transparency and simplicity as the core driving points for investors to start investing into the equity markets through the mutual fund route. So even when the markets seem choppy, we will strongly propagate financial goal based investment strategies and hence happy investing!

Source: AMFI

Disclaimer – This document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing.

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