In August 2023, equity mutual funds in India experienced significant net inflows totaling Rs. 20,245.26-crore, as reported by the Association of Mutual Funds in India (AMFI). Among the various categories within the equity mutual fund sector, small-cap funds attracted Rs. 4,264.82-crore, sectoral/thematic funds saw inflows of Rs. 4,805.81-crore, and multi-cap funds received Rs. 3,422.14-crore in investments.
West Bengal investors displayed a strong preference for equity mutual funds, with approximately 53% of their investments allocated to equity schemes, 34% in debt & liquid schemes, and 10% in balanced funds. The total mutual fund investments in West Bengal amounted to Rs. 2,49,969.52-crore.Tata Mutual Fund, in particular, witnessed significant interest in equity mutual fund schemes in West Bengal. Among Tata Mutual Fund investors, 58% of their Assets Under Management (AUM) were in equity schemes, 28% in debt & liquid schemes, and 14% in balanced schemes, as per the AMFI data for August.
Within the equity category, infrastructure funds like the Tata Infrastructure Fund gained substantial investor interest. This open-ended equity scheme focuses on investments in the infrastructure sector. Abhinav Sharma, Fund Manager at Tata Asset Management, highlighted their investment strategy, emphasizing the Growth at Reasonable Price (GARP) approach. This approach allows them to invest in high-quality stocks while ensuring they are acquired at reasonable prices. Tata Infrastructure Fund’s portfolio includes sectors such as capital goods and engineering, cement, power utilities, logistics, and residential real estate, which are expected to benefit from the upturn in capital expenditure cycles and long-term trends. The portfolio is designed to provide a balanced mix of quality companies and potential re-rating candidates, aligning with their investment philosophy.
