Index funds a big draw as market volatility rises
Deccan ChronicleMumbai: In times of high market volatility retail investors are relying more on index funds and other exchange traded funds for putting their savings as these are cost effective compared to other mutual fund schemes and less risky than investing in individual stocks. The other schemes category saw net inflows worth Rs 41,226 crore in the first quarter of financial year 2022-23, according to a report by Morningstar, a US-based firm that tracks trend in the Indian mutual fund industry. "The other schemes category, composed of index funds, gold ETFs, other ETFs, and global funds of funds has had phenomenal flows over the past year and a half. The index funds among these added over 59,000 crore inflows since June 2021 as assets under index funds rose from Rs 33,824 crore on Sept.30, 2021 to Rs 83,408 crore on June 30, 2022.