Impact of COVID-19 on Mutual Funds in India

Abstract

The global impact of the COVID-19 pandemic has left an indelible mark on various sectors, resulting in a significant downturn across most industries, with the notable exception being the pharmaceutical sector. This widespread economic turbulence has created a period of considerable uncertainty for investors in mutual funds. This research endeavours to conduct a comprehensive and in-depth analysis of the prevailing market conditions in the aftermath of the COVID-19 pandemic, with a particular focus on the mutual fund landscape. The primary objective is to scrutinize the circumstances faced by both individual investors and mutual fund trusts. Specifically, this article seeks to delve into the extent to which the pandemic has influenced the Mutual Funds Industry in India. It aims to draw comparisons between the situations that prevailed before the outbreak of Covid-19 and those that emerged in its wake. To collect and evaluate the necessary data for this analysis, the study has carefully selected the time frame spanning from December 2019 to June 2021. This period encompasses critical phases of the pandemic and its economic repercussions. The research relies on secondary data obtained from the official website of AMFA (Association of Mutual Funds in India), which offers a chronological record of Net Asset Management values. The results of this study aim to provide precise, insightful, and comparative information within the specified study period, shedding light on the impact of the pandemic on mutual fund investments in India.