The run up in the Sensex over the past couple of months and the sops that were offered to equity linked schemes in the FY2000 Budget have ensured higher collections of funds by equity linked mutual fund schemes.

The mutual funds industry expects 25-30% growth in equity funds collections in this financial year. The growth is largely attributed to higher returns from capital markets leading to a positive response from investors.

The out-performance of equity linked schemes has also led to a gradual shift in investor interest from income based funds. Over the past year, over 80% of the open ended equity funds have posted returns higher than the Sensex. The outcome of this trend is that most of the Asset Management Companies (AMC) have rolled or are in the process of launching equity or sector linked schemes.

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