Business

How Mutual Fund Investors Are Adapting Strategies Amidst Stock Market Volatility

Investors Hold Steady Despite Market Turbulence

In a display of resilience, retail investors continued their mutual fund investments through February, undeterred by the volatile stock market. However, a noticeable shift in investment patterns was observed, with a slight decrease in SIP contributions and equity inflows.

Mutual fund investors change pace & tack amid stock slide

Shift Towards Flexicap Funds

Amidst the market's unpredictability, investors are increasingly leaning towards flexicap funds, moving away from small and midcap options. This strategic pivot highlights a cautious yet adaptive approach to navigating the current financial landscape.

Gold ETFs: A Mixed Bag

Gold ETFs have continued to attract significant interest, with strong annual inflows despite a monthly decline. This trend underscores the precious metal's enduring appeal as a safe haven during times of economic uncertainty.

Overall AUM Sees a Dip

The mutual fund industry witnessed a 4% decrease in total assets under management (AUM), primarily attributed to mark-to-market losses in equity funds. This development reflects the broader challenges faced by the sector in a fluctuating market environment.