The recent decline in markets has hurt the performance of equity schemes. Data from Value Research showed that at least two of every five diversified equity schemes had given negative returns in the first six months of FY19.
The monthly data released by the Association of Mutual Funds in India (Amfi) also showed that the overall industry assets had shrunk 12.5 per cent to Rs 22 trillion in September. Experts attributed this to the large quantum of outflows seen in the debt market schemes. However, the flows coming in through the systematic investment plans (SIPs) remained intact. The contribution through SIPs stood at Rs 77.27 billion, rising marginally from the previous month’s tally.
The recent volatility in equity markets
has made investors nervous. Advisors say investor queries have spiked in the past few days. “We are asking investors to maintain a long-term view, without getting perturbed by market swings,” said another advisor. Experts fear if the market volatility continues to be high, investors might start pulling out and wait for things to stabilise.