No panic redemptions by local MF investors this time despite mayhem

Indian savers appear to have finally learnt the art of sticking to their long-term wealth-building goals. In earlier periods of market downturn, mutual fund investments would get the chop, with redemptions far outweighing inflows on an average. Not any longer. Industry data showed that the gross sales to redemption ratio reflects no panic from local savers. Gross buy-to-sell ratio — total inflows divided by outflows — of equity mutual funds stood at 1.75 at the end of April, compared with a medium ratio of 1.60 in the past 12 months.

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