Fixed Deposits, Large Cap Funds increase in popularity
AMFI data for Aprils shows that Large Cap Funds made up for bulk of new folios. This is indicating a safety first approach given the higher volatility in Mid-cap and Small Cap Funds
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Net Inflow into Mutual Funds fell by half in April 2020 but Bank Term Deposits performed quite well with net inflows 4 times higher than 2019. This is probably due to increased tendency towards less risky assets, less need for funds given the current business environment as well due to slowdown in loan growth which means less need for downpayment amounts
Overall, investors behaviour suggest that these see enhanced risk in the current environment. This is also visible in variety of surveys where consumers are saying they are quite concerned about their financial future.