Mumbai: Investor focus is shifting from equity to debt funds of late because of the decline in stock market and extreme market volatility, a top mutual funds industry official said.
“Investor focus is shifting from equity to debt funds because of the extreme volatile market conditions,” Association of Mutual Funds in India (AMFI) chairman A P Kurian told reporters today at a seminar on risk and compliance, adding, “It would take a few more months before the equity market starts looking up on a sustainable level.”
Investors would start revisiting the equity market only after a few months. “For that, equities have to start coming up on a sustained basis,” he said.
Kurian said that new fund launches have been put off because of the prevailing volatile market conditions.
“New funds are there, but people are not launching them because of (prevailing) market conditions. New fund houses have put off their entry into the market because of market conditions,” he said.