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Abstract
The prolonged scepticism of investors about investment in mutual funds is evident from the fact that only 9% of the domestic savings go into this asset class. A SEBI survey carried out in 2019 disclosed the fact that over 90% of investors still preferred bank deposits over other forms of investment. However, all the 43 Asset Management Companies in the country have together managed to enhance the total Assets Under Management to over 26 Lakh Crores in October 2019 from over 5 Lakh Crores in December 2007. The increasing cash flows through lump sum investments and systematic investment plans have enabled these institutions to significantly scale up over the last 12 years. However, investors across both segments have continued to nurture doubts about performance, particularly during the bearish phase. Although there has been a significant degree of increase in terms of number of accounts for SIP’s and lump sum investments, there is also been periods when cash flows were reduced to a trickle or completely dried up. This is particularly true of funds that are equity focused or have a considerable part of their portfolio in equities.