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Below the Quote on Mutual Fund Industry Outlook 2024 by G Pradeepkumar, CEO, Union Asset Management Company Private Limited

“The outlook for the industry remains very positive, driven by significant momentum, particularly through Systematic Investment Plans (SIPs). Retail participation is steadily rising, with monthly SIP flows surpassing Rs. 17,000 crores, and this trend is expected to continue. Investors recognize the potential for wealth creation and goal-oriented investments, contributing to a notably positive outlook. Expected global interest rate reductions, including those by the Reserve Bank of India, bode well for both equity and fixed income prospects. For investors, India remains one of the largest economies in the world and is expected to be one of the fastest growing. This may attract not only domestic investors but also international flows in the new year. While elections are one of the important factors that could decide the future of the market, at this stage, the market players are building political stability and continuity in government, which augers well from a market and industry point of view. While mid-cap and small-cap funds have performed well in recent months, a cautious approach is recommended. Staggered investments through SIPs or Systematic Transfer Plans (STPs) are advisable for retail investors. Large-cap stocks appear reasonably valued at this stage. Sectoral funds may present opportunities for people who want to take tactical calls, but careful consideration and advice from qualified advisors or distributors are essential.”

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