According to some mutual fund advisors, many conservative debt mutual fund investors, especially those with deep pockets, are shifting their money to equity mutual funds because of falling returns in debt mutual funds. ET.com Mutual Funds have been reporting that many new investors are aggressively investing in equity mutual fund schemes after the banks have started reducing interest rates after demonetisation.
Rich investors or High Networth Individuals have higher capacity to withstand financial setbacks. So, their new-found love for equity mutual fund schemes may not have disastrous consequences. However, average investors should be extremely careful about shifting money to equity mutual funds without doing a proper homework.
