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Purvesh made post

How 21 days lockdown in INDIA is going to impact the Mutual fund industry?

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5 months ago

the financial markets, as well as other asset categories such as real est­ate , whose imp­act may be deeper and longer

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Ayushi Kampani answered.
4 months ago

Lockdown in India is basically affecting the entire economy to a great extent, due to which stock markets have become highly volatile and uncertain. Investors are now restraining themselves from making fresh investment and redemption has increased in the past few weeks. 

Now, since stock markets are not performing really well and most of the stocks except the pharmaceuticals sector are riding downwards. So, an all-equity based mutual fund portfolio is definitely going down and NAV has reduced extremely. However, debt funds are still performing okay and hence a mixed portfolio or a debt-based portfolio is performing comparatively well.

This is happening because of the market conditions and investment in these funds is going to be recovered as soon as the economy comes into function. So, there is no need to make panicked redemptions and it is better to hold the investment during this phase.