What Can Mutual Fund Investors Learn from 2024

2024 has been a year full of ups and downs. The mutual fund industry in 2024 was a mixed bag. While there was significant mutual fund performance in 2024, the year was rampant with risk as well.

As the markets took their course, several other significant events occurred. These events, in one way or another, shaped our understanding and helped us grow as humans and investors.

Let’s dive into some key takeaways from major events and how they drove mutual fund trends in 2024.

Election
The 2024 general election was a seminal event in Indian history. 642 million voters *participated in the election, more than any other country in the world. It also marked the highest turnout ever for women voters.

As what usually happens with elections, the results were quite different from the market expectations. In investing also things may not go as expected. Investors need to prepare for the unexpected as well through diversification.

Geopolitical conditions
No one can predict how the geopolitical conditions may change. A recent war that was assumed to be over in a few days went on for many months.

Similarly, many investors try and predict the markets to invest. However, this may not be the ideal strategy. It is usually in the best interest of investors to enter the markets with a steady long-term vision instead of expecting a sudden windfall.

It is also seen in wars that countries depend on other countries for advice and support. This is how they are able to sustain such a condition.

Similarly, investors should also take professional financial advice and support to help with their investments. Professional consultants can help create a strategy that is tailored to your particular needs and circumstances.

Severe Weather Events
The world has experienced numerous severe weather events over the past year. Some of the major Hurricanes and Cyclones were forecasted before the actual events occurred. This prediction provided some safeguard to citizens who could prepare for the event.

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*https://www.cnbctv18.com/india/politics/lok-sabha-election-2024-creates-a-world-record-by-registering-over-642-million-peoples-votes-19422469.htm

Even though an investor cannot predict the markets, it is crucial for investors to remain abreast of global, national, and financial news. Being aware of current affairs can help investors navigate their portfolios through difficult times and also identify early opportunities. Keeping your portfolio prepared for adverse events beyond your control with diversification is also a key takeaway from this.

2024 T20 World Cup
The 2024 T20 World Cup will remain a favorite memory for all cricket-loving Indians. The Indian team delivered a stellar performance throughout the tournament. It should be noted that India did not lose a single match in the entire tournament.

Their performance shows investors the importance of consistency. While investors may not always make profits from investing, they are more likely to build a potentially larger corpus through consistent SIP investments rather than through erratic investing.

Overall, the mutual funds outlook in 2024 has been on a growing trajectory and taught us many lessons. It is up to us to learn from past events and grow into becoming wiser individuals and investors. We should remember that investing is a constant practice and learn from our mutual fund strategies in 2024 to stay prepared for 2025.

Disclaimers:
This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates, shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as a research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable. While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

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Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.