IMPACT OF COVID-19 ON MUTUAL FUND INVESTMENTS IN INDIA
DOI:
https://doi.org/10.29121/shodhkosh.v4.i1.2023.5209Keywords:
Mutual Funds, Covid-19, Investment Behavior, Sip, Investor Sentiment, IndiaAbstract [English]
The COVID-19 pandemic caused a significant disruption in global financial systems, including India's capital markets. The mutual fund industry, which had experienced consistent growth and increasing investor participation, faced unprecedented challenges due to market volatility, declining economic activity, and shifting investor behavior. This study aims to analytically assess the impact of COVID-19 on mutual fund investments in India by analyzing changes in investor behavior, fund performance, and risk perception during the pandemic. Using a sample size of 150 respondents collected through structured questionnaires and complemented by secondary data from the Association of Mutual Funds in India (AMFI), the study employs statistical tools such as descriptive statistics, paired t-tests, and regression analysis. The findings reveal a considerable decline in Systematic Investment Plan (SIP) volumes, increased redemptions, and a shift toward low-risk debt instruments. The paper concludes with implications for policymakers, fund managers, and investors.
References
Bhattacharya, R., Mehta, A., & Shah, P. (2020). COVID-19 and mutual fund performance: An Indian evidence. Finance India, 34(3), 701–715.
Chakraborty, S., & Seth, R. (2021). Systematic investment patterns in Indian mutual funds during COVID-19. Asian Journal of Economics and Finance, 3(1), 53–65.
Das, A. (2021). Risk perception and mutual fund investment: A pandemic perspective. International Journal of Economics and Management Studies, 8(7), 14–22.
Deloitte. (2020). Investment behavior under uncertainty. https://www2.deloitte.com
ET Bureau. (2020). Mutual fund redemptions surge in April. The Economic Times.
EY India. (2020). Financial services in the COVID era. https://www.ey.com
Goyal, V., & Joshi, P. (2022). Investor behavior during pandemic: Insights from mutual fund inflows. Journal of Investment and Management, 11(2), 20–31.
ICRA. (2021). Mutual fund industry review.
Jain, R., & Tiwari, M. (2021). Behavioral finance in pandemics. Indian Journal of Behavioral Economics, 2(1), 1–12.
KPMG. (2021). Mutual fund trends in emerging markets.
Mishra, S., & Nair, K. (2021). Mutual fund NAV fluctuations: A COVID-19 case study. Financial Markets Review, 9(2), 67–79.
OECD. (2020). Global financial markets and COVID-19. https://www.oecd.org
PwC India. (2021). Mutual funds and investor sentiments. https://www.pwc.in
RBI. (2020). Monetary policy reports – COVID-19 focus. https://www.rbi.org.in
SEBI. (2021). Annual report 2020–21. https://www.sebi.gov.in
Sharma, A. (2020). SIP performance in COVID times. Journal of Emerging Finance, 12(1), 33–42.
Singh, A., & Chander, S. (2021). Debt mutual fund crisis during COVID-19: A liquidity perspective. Indian Journal of Finance, 15(2), 45–55.
World Bank. (2021). Financial sector responses to COVID-19. https://www.worldbank.org
Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of COVID-19. Finance Research Letters, 36, 101528. DOI: https://doi.org/10.1016/j.frl.2020.101528
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Dr. Sindhu K. P.
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
