Watch out for April SIP numbers

Treat exit by retail investors as a contrarian signal for entering equities

In January-March 2020, we saw the most volatile quarter in over a decade. Action across various mutual fund segments is worth noting. Short-term debt funds are under great redemption pressure and the Reserve Bank of India (RBI) may have to create a bailout mechanism. However, the equity segment still appears strongly bullish, which means retail sentiment is good.

As of December 2019, the Association of Mutual Funds in India (Amfi) data shows that high net worth individuals (HNIs, meaning those with over Rs 2 lakh invested) and retail investors owned about 90 per cent of diversified equity assets under management (AUM).