Mutual fund houses saw significant inflows across schemes on Tuesday even as equity markets slumped, with the benchmark Nifty 50 losing close to 6%.
Investors utilised the drop in prices to make tactical investments for the long-term, according to fund managers.
Edelweiss Asset Management reported inflows across segments, said Chief Investment Officer Trideep Bhattacharya.
"This lower mandate for the NDA was an excuse for correction in valuation of in-trend companies," he said, in an interview with NDTV Profit. Investors are looking to deploy more funds strategically, with a buy-on-dips approach, he said.
Investors have been gravitating to companies with strong earnings momentum. This trend shows how investors are now following long-term investment strategies, according to the CIO.
Abakkus Asset Manager's @SunilBSinghania gives insights on stock market, speaks about how dip might impact mutual fund investors. @MuralidharSwami https://t.co/VxcsHzgwBx
June 5, 2024Motilal Oswal AMC reported record high inflows and low redemption rates on Tuesday, said Executive Director Akhil Chaturvedi. Investors had taken the opportunity to capitalise on the correction, according to him.
"People had cash to deploy once the election results were out because the likelihood of the government and its policies continuing ensured a better outlook for investments," he said.
Investors in India need to decide which camp they are in, said Swarup Mohanty, chief executive officer at Mirae Asset Investment Managers. If they are sellers, then they should look for opportunities accordingly.
However, if they are buyers with a belief in India's growth story, then days like Tuesday are opportunities to add to investments where they have conviction, he said. "If one wants to benefit from the long-term India story, then they will have to stay put."
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