Is the market changing from looking long-term to short-term? If yes, then how would mutual fund investors adapt to this new normal?
No, there is no change of that sort. In fact, my view is that investors are looking at the long-term horizon. This is because if you look at the market from the recent economic outlook, everybody should be running away. But it is the other way round that we have seen. People have poured in money. So, in that sense, people are looking at the long-term horizon. They are not just looking at the next quarter.
However, we will get to know the economic reality only in the coming months, probably with the September-end results, as the moratorium on loans has come to an end. We will then get to know how much debts or loans given by banks have turned bad and what the scale of increase in the NPAs is. So, the outlook remains grim. But investors are not running away. So, I would disagree. I think investors are looking long-term.