AMFI data indicates a significant increase in equities mutual fund inflows of up to ₹34,697 crore in May 2024. This jump reflects an 83.42 percent increase over the previous month, establishing a new industry high.
Systematic investment plans (SIPs) received ₹20,904 crore in May, up from ₹20,371 crore in April. In April 2024, the ₹20,000 crore milestone was reached. Additionally, SIP registrations increased significantly in May 2024, totaling 49,74,400.
According to Mayukh Dutta, Chief Business Officer at ITI Mutual Fund, active equity schemes had a 29% increase in gross inflows in May 2024 compared to April 2024, totaling ₹71000 crores. The 119% rise in gross inflows into sectoral equity schemes (₹25959 crores in May 24 vs ₹11840 crores in Apr 24) might be attributable to NFOs.
“If we go further, the growth in flows is not as much as multi-cap, large-cap, and small-cap saw single-digit growth in gross inflows in May 24 versus April 24. Midcap bucked the trend by growing 16.5% in gross flows when compared to April, i.e., ₹6585 crores in May 24 vs ₹5651 crores in April 24. Overall, the gross equity flows were up 29% while net equity inflows were up 83% (May 24 vs April 24) which is because redemptions were slightly lesser in May. On the debt side, liquid and money market categories got net inflows showing a preference for low-duration scheme categories. In the hybrid space, arbitrage funds continue their good run and had gross inflows of Rs. 30795 crores in May and net inflows of ₹12758 crores. This category AUM is now ₹1.8 lac crores vs ₹1.34 lac crores as of end Dec 2023, a growth of 34.5% in five months," added Dutta.
What has Warren Buffett said?
The rising trust in equities to make money reminds one of Warren Buffett's investing beliefs and his belief in using a long-term investment strategy to build wealth. Buffett, dubbed the "Oracle of Omaha," founded Berkshire Hathaway as a massive holding company with stakes in a variety of profitable businesses. At a time when investors are bullish about the stock market's performance and eager to invest a portion of their profits in shares, reviewing Buffett's key investment ideas makes sense.
The famed investor's value investing philosophy and long-term strategy are frequently debated by both novice and experienced investors seeking to profit from the market. Some of his fundamental principles are:
Value Investing: Buffett sees the stock market as a place to buy businesses, not just securities, and he focuses on buying stocks for less than their inherent value.
Long-term Mindset: Buffett is a patient investor who believes that, despite market volatility, stocks should be purchased and kept for the long run. He famously quipped, "Our favourite holding period is forever," which wonderfully encapsulates this idea.
Quality Trumps Price: Buffett would rather buy a wonderful firm at a fair price than a decent-priced company. Strong enterprises with persistent competitive advantages are prioritized over transactions by him.
Recognize your Investment: Buffett highlights the significance of doing extensive research and knowing the companies before investing your money.
Remain Calm and Avoid Emotional Investing: Buffett recommends keeping a clear head and not letting market fluctuations or hoopla cloud your judgment. Stick to your investment plan.
Buffett recommends investing against the crowd, purchasing when the market is down, and remaining cautious when everyone else is bullish.
These are only a few of the core assumptions that underpin Warren Buffett's investment philosophy. Investors must recognize that there are risks to investing, and that previous performance does not guarantee future results. However, by following these advice and conducting your own research, you can improve your prospects of long-term financial success.
