LTCG buzz and recent market correction hit MF investments

“Many investors call us up to ask whether they should stop their SIPs or is it worth investing in mutual funds anymore. These are all direct investors who are directionless after the recent market volatility and the buzz around LTCG tax,” says Harpreet Singh, Founder, Vserv Capital Services. He adds that many of these investors are still not getting in touch with mutual fund advisors. “Some investors are still not getting help. This might result in bad investment decisions,” says Singh.

Recent market correction resulted in large investors moving to equity mutual funds fold.

AMFI data shows that the mutual fund industry added about 9.26 lakh SIP accounts each month on an average during the FY 2017-18, with an average SIP size of about Rs 3,300 per SIP account. “These investors were happy with their investment decisions when the market was running up. Every scheme was giving good returns, so they forgot about their risk appetite. After the correction, they have nowhere to go. Now they are making frantic calls to advisors. This should have been the first step,” says Harpreet Singh.