Equity Mutual Fund Raised Due to reducing the Surcharges of FPI:
According to the expert’s analysis, the equity mutual fund raised Rs 24,000 crore. It raised by investor’s investments from July to Sep 2019. And with a growth rate of 35% from the previous quarter. Due to reducing the Surcharges of Foreign Portfolio Investment (FPI), and removing the corporate tax.
On June 30, 2019, the inflow of equity mutual fund is Rs 7.23 lakh crores and it raised to Rs 7.24 lakh crores on Sep 30, 2019.
As per the expert’s analysis, the noticed fund inflow in June is Rs 17,680. In September 2019, it increases to Rs 23,874.
The inflow of the large-cap category raised around Rs 6000 crores or 25%. Due to the investors interested to invest in 100 stocks in the market.
The government put struggles on give on to receiving the maximum of money from the large-cap. Due to the declining of FPI surcharges, removing of corporation tax, growth in PSU, and reform suspending.
In the last year from April to Dec, the equity category noticed the inflow around Rs 25,000 crores. In the 2018-2019 financial year ending, a drastic fall occurred in the market then the fund declined to Rs 17,876 crore. Till June 2019, the fund decreasing continued to Rs 17,680. In Sep 2019, the equity category fund inflow raised to Rs 23,874 crores.
In small-cap and mid-cap having outstanding improvement. The FPIs reduce the market unpaid queries. And the distances of funds in small and mid-cap firms affected the equity mutual funds inflow.
The mutual funds run with the help of SIP. it was useful as an investment vehicle for the investor. Due to this, investors can invest a small amount in installments rather than a huge amount. It having weekly, monthly, and quarterly payments.
The mutual funs having the growth in fund inflow, In June 2019, the net flow of Rs 42,357 crore and it increased to Rs 46,578 crores in Spe 2019.
Decreasing the cost of crude oil, and reducing the reforms by the government are the BSE Sensex having high returns of 40,000 thresholds. For market growth, decreasing corporate taxes plays a major role.