The Covid-induced lockdowns, which spared millions of ordinary officegoers the daily commute and spawned a loyal army of equity investors, appear to have drastically altered the asset-class mix of household savings in India.
Mutual fund investors face a dilemma amidst volatile stock market conditions during Lok Sabha elections. Fear of correction at peak market levels and FOMO driving sectoral/thematic funds. Analysts recommend balanced advantage funds, asset allocation funds, and hybrid funds for moderate risk appetite investors.
Debt mutual funds outperformed fixed deposits, emphasizing the importance of considering risk profile and investment goals. The strategy involves focusing on short-term funds and excluding target maturity funds.
Debt mutual fund (MF) schemes, which witnessed relatively muted inflows in the past three years, saw a surge in investor interest in April amid election-induced volatility in the equity markets.
Active debt funds garnered nearly Rs 66,000 crore net inflows in April, most at least since December 2020.
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