The year 2019 has proven to be another turbulent year for the Indian equity market. Various events such as, the general elections, fiscal and monetary policies, corporate earnings, loan defaults, macro indicators, global trade tensions, have had investors at the edge of their seat.<\/p>\n\n\n\n
Despite the volatility, the Sensex scaled new highs<\/a> and is currently trading above the 41,000 mark since the last seven sessions. However, as mid and small caps continued to trade lower, the valuation gap between the large cap and smaller caps widened.<\/p>\n\n\n\n Investors shunned mid and small caps due to the prolonged\u00a0economic slowdown<\/a>\u00a0and moved to the safety of large caps, causing the frontline index to rally.<\/p>\n\n\n\n The impact of volatile market could be seen in the\u00a0mutual fund<\/a>\u00a0inflows. The\u00a0mutual fund<\/a>\u00a0industry added assets worth Rs 4 lakh crore in 2019, taking the asset base to an all-time high of Rs 27 lakh crore at the end of November. But this could be largely attributed to inflows in\u00a0debt-oriented schemes<\/a>. On the other hand, equity\u00a0mutual funds<\/a>\u00a0witnessed inflows of Rs 70,000 crore, lower than Rs 1.3 lakh crore in the preceding year.<\/p>\n\n\n\n Inflows were the lowest in the month of November 2019. Since the market touched new highs during the month, investors looked to book profits, redeeming their investments. Table: Mutual fund performance report card for 2019<\/em><\/strong><\/p>\n\n\n\n
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