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Buy low, sell high and repeat: Timing is taking root in mutual funds

Inverse correlation between net equity MF inflows, market performance

Abhishek Kumar Mumbai
BSE, stock market, sensex
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The post-pandemic trend in inflows into active equity mutual fund (MF) schemes shows a section of investors trying to time the market. The monthly net inflows in the past few years reveal an inverse correlation with market performance: net inflows go up during phases of market downturns and vice versa.
Take, for example, the December 2022–March 2023 period.
The National Stock Exchange’s Nifty50 had ended lower in three consecutive months (December through February) and could only post 0.32 per cent gains in March.
Or

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First Published: May 29 2023 | 6:01 AM IST

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