Mutual fund investors bet big on large-cap and index funds on June 4

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The fall in the stock market on the day of the Lok Sabha election results saw retail investors holding steady on their SIPs but using the dip to make lump-sum investments. They also used the systematic transfer plan route to move money from short-term debt funds into equities, and increased their existing allocation to mutual funds.

Mutual fund investors went heavy with lump sum investments.

Indian mutual fund investors took advantage of the market crash that happened last week, while adopting strategies tailored to their investment goals, risk tolerance and time horizon, said experts.

The Indian benchmark indices, NSE Nifty and BSE Sensex, dropped nearly 6 percent each on June 4 after election result trends showed that the Bharatiya Janata Party would not secure an outright majority on its own in the Lok Sabha election.

However, since then, and with the formation of the National