Amita Mahapatra, 45, a housewife in Jamshedpur who invested in LIC Growth fund and UTI Contra fund in 2004 was worried about the value of money she had invested. “I had bought units worth Rs 10,000 four years back. During market turbulence, I used to pray that the value should not fall below the purchase price,” she says. Did she think about shifting her equity exposure to debt? “I do not have a huge portfolio, so was less worried and mutual funds have been giving better returns. Also as a housewife I do not have to file I-T return, so I did not think on those lines,” she says.

Namit Gupta, 42, a media professional has been investing in mutual funds for saving taxes and he is not upset with the returns either. “A 30-35 per cent return on my investment isn’t bad,” he smiles. What was his response to the market movements affecting his portfolio? “I knew it would take a hit, but did not want to panic for two reasons — I am in it for at least 3-5 years and had bought most of my units when the Sensex was ruling at around 12,000 points.” That is another intelligent investor.

People from the industry have also given a thumbs-up to the risk-taking appetite of retail investors. However, they also have a word of caution. “Investors should not look at short-term gains in this market. The strategy should be ‘time-in’ the market rather than ‘timing’ the market. Fund managers should also not take undue risks for any near-term profits. If an investor stays in the market for 2-3 years he will surely gain from it,” says Vikrant Gugnani, CEO of Reliance Mutual Fund.

... contd.