August 2024 proved to be a stellar month for mutual funds in India, with 88% of the top 25 mutual funds reporting gains. The Axis Bluechip Fund emerged as the top performer, posting a 2.2% month-on-month (MoM) growth in its Net Asset Value (NAV). This upward trend highlights the growing appeal of online mutual fund investment platforms, enabling investors to capitalise on market opportunities.
Strong performers in the mutual fund space
The Axis Bluechip Fund wasn’t alone in this surge. Other notable performers included the ICICI Pru Value Discovery Fund, which grew by 2.1% MoM, and the HDFC Small Cap Fund, which saw a 1.9% increase. The positive momentum continued across the board, with Axis Midcap Fund and HDFC Flexi Cap Fund growing by 1.8% and 1.7%, respectively.
For those looking into online mutual fund investment, these top performers signal the advantages of carefully selecting mutual funds based on performance trends and sector allocations.
Sectoral trends contributing to growth
Sectoral and thematic funds were key drivers of mutual fund growth in August, accounting for over 73% of all new fund offers. Motilal Oswal analysed the Technology, Healthcare, Retail, Consumer, NBFCs, and Telecom sectors, which witnessed a significant rise in mutual fund investments.
This focus on specific sectors showcases the importance of sectoral allocation when making decisions in online mutual fund investment. Investors looking to diversify their portfolios can take advantage of sector-specific growth opportunities that promise long-term gains.
Inflows continue to surge
August marked the 42nd consecutive month of positive inflows into equity-oriented mutual funds. A total of ₹38,239 crore was poured into these funds, making it the second-highest monthly inflow on record. Large-cap, mid-cap, and small-cap funds all experienced robust inflows, providing diverse options for investors using online mutual fund investment platforms.
The growing investor base, now at a record high of 20.45 crore mutual fund folios, further illustrates the increasing popularity of mutual fund investments across different investor profiles.
The rise of passive funds
Index ETFs and index funds also witnessed significant growth, attracting ₹14,599 crore in inflows during August. This highlights the growing interest in passive investment strategies among retail investors, which is easily accessible through online mutual fund investment tools.
Invest safely
With 88% of top mutual funds experiencing growth, August 2024 has set the stage for continued confidence in the mutual fund market. Sectoral funds and large-cap investments continue to attract significant inflows, while the Axis Bluechip Fund leads the pack with its impressive MoM performance. For investors exploring online mutual fund investment, this is an opportune time to delve into diversified portfolios and sectoral opportunities.
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