What’s fueling the surge in hybrid, multi-asset, and largecap & midcap funds? Sanjay Shah reveals the insights.

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Economic Times, click this post to read the original article.

In the past month, the investment industry has seen a significant increase in participation, with approximately 834,000 new investors joining, bringing the total to around one crore. This surge can be attributed to various factors, including the introduction of an incentive program that offers up to Rs 2,000 per new investor. This initiative is expected to attract even more individuals to invest in hybrid, multi-asset, and large-cap and mid-cap funds.

The increase in new investors is likely to have a meaningful impact on the industry over the next year. As more people become aware of the benefits of diversifying their investments, these fund categories are gaining popularity. The combination of incentives and the growing understanding of investment options is fostering a more robust investment environment.

Overall, the recent trends indicate a positive shift in investor behavior, with a clear potential for continued growth in the market. The influx of new participants could lead to increased capital flow into these funds, further solidifying their position in the investment landscape.