

Also, they are open-ended schemes and that means investors will not face problem of liquidity. Mutual funds promise higher returns than most investment schemes. These funds are managed by professional fund managers. They are managed collectively to earn the highest possible rate of return. What are mutual funds and why are they so popular?Ī mutual fund is an investment scheme where capital collected from different investors is invested in company shares, stocks or bonds. The net inflows were largely pulled down due to a steep correction in small and mid-caps along with various other factors, including border tensions with Pakistan. However, this was the the fifth successive year of net inflows in equity mutual funds, further establishing their popularity among investors. According to the data provided by the Association of Mutual Funds in India's (AMFI), investors pumped in more than Rs 1.11 lakh crore in equity-oriented mutual fund (MF) schemes in 2018-19, a decline of 35 per cent compared to Rs 1.71 lakh crore inflows in 2017-18. The last financial year wasn't great for equity-oriented mutual fund (MF) schemes.
