Changing Investment Behaviours

I’m not going to write about the obvious topic this week because I don’t believe that there’s anything new to be said. The shape of things is reasonably clear to every investor and whatever shall be shall be. However, for mutual fund investments, there’s an interesting aspect to the current bear cycle that wasn’t there earlier. Unlike earlier, Indian mutual funds are receiving significant regular inflows through SIPs (systematic investment plans). Based on numbers that I’ve gleaned by talking to various people in the industry, about Rs 1500 crore is flowing in through the SIP route into equity funds every month. I do realize that this not a great level to declare significant—for a potential market of our size, it should be ten times as mu

This article was originally published on August 22, 2011.