Samvat 2075: MF investors' appetite for equity schemes sharply diminished

Staying put for the long-haul will mitigate volatility risks, say experts

Mutual fund (MF) investors’ appetite for equity schemes sharply diminished during Samvat 2075. Between October 2018 and September 2019, equity schemes garnered Rs 84,193 crore of inflows, which was about 40 per cent less than the previous Samvat.

According to industry experts, investors’ cut-back on equity schemes was caused by disappointment in mid- and small-cap funds, in which they had expected robust returns.

“Mid- and small-cap funds had attracted a significant chunk of investor flows, given they were expecting 30-40 per cent returns on these investments,” observed Kaustubh Belapurkar, director (fund research), Morningstar India.

However, both categories fell short of expectations. Mid-cap funds