Lockdown due to COVID 19 crisis has no much impact in the industry which had gone through digitalization because their operational activities are not so much affected. But it had a secondary effect of slowing down in new investment there also a considerable decrease in gross inflows into equity funds.
Almost 80-85 % of transactions are online. So Financial transactions plus SIP (Systematic investment plan) majority of their operations such as registrations, stoppages, etc. are possible through online. However, some of the non-financial activities like bank mandate are frozen. Customers prefer to shift to another branch due to a lack of better net banking facilities than others. The situation is not different in the case of non-financial transactions. AMC (asset management company) marketing professional spoke the condition of invisibility. Due to lack of clarification from the part of state government in particular Maharashtra and Gujarat AMC have no intention to reopen existing branches in their respective territory.
There is a significant decline in the net inflows in equity funds march and April. They jump up to Rs 12,175 crore 17 months high in March.Net inflows jumped to 43% in April and the same trend follows in May. On the other hand, industries are facing the pressure of redemption from Investors like professionals and businessmen due to job loss or salary cuts. This would be around 20% of the decline in client Investment.
The mutual fund Industry is successfully moving its operations to digital format. Investors have started to invest in Mutual funds with their smartphones and laptops. The net monthly Inflow extended from Rs 43,431 crore In April 2020 to Rs 94,224 crore in May 2020. The growth is more than 100 % which is relatively a good percentage.
According to data published by mutual fund analytics and research firm, there is a drop-down in credit risk funds in AUM (asset under management) of Rs 5204 crore over the previous month and medium-term funds saw a trickle of Rs 1464 crore. According to the fund researcher Morning star Investment Advisor India, all Inflows are improved relative to the low-risk categories, and Outflows are slackened to high-risk categories.
