Year 2018 was an action-packed year for the Rs 23 lakh crore Indian mutual funds (MF) industry as well as for its investors. Funds got friendlier as costs were pushed down and steps were taken to further curb misselling. Fund categories - and all schemes within - got standardised. This made it easier for investors to compare one fund with another. Perhaps the only piece of bad news was the introduction of long-term capital gains tax (LTCG) on equity funds in Budget 2018.
Flows remained strong through the year: in November 2018, close to Rs 8,000 crore came into MFs through systematic investment plans (SIP); compare this with December 2016 when inflows stood at under Rs 4,000 crore.
Flows were strong despite equity markets remaining volatile throughout the year. While the S&P BSE Sensex gained 5.6 percent year to date (as on December 14), equity funds disappointed.
Large-cap funds fell by 4 percent on an average in 2018, mid-cap funds were down 14 percent while small-cap funds were off a steep 21 percent, as per Value Research.
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