Investor behaviour is significantly different from many years back, says HDFC AMC

CNBC-TV18's Nimesh Shah caught up with Milind Barve, MD, HDFC AMC from the side-lines of Motilal Oswal Conference and asked him if the domestic flows are sustainable at the pace at which mutual funds (MFs) are getting it and the trend in mutual funds will continue going ahead.

We are seeing a share of MFs, which used to be 1-2 percent, is going to closer to 8-9 percent. So people are clearly seeing a meaningful and a very decisive shift away from bank deposits to more capital market oriented product and MFs are a part of that, he said.

This is the move that has played out for more than about three and a half years and is likely to sustain, he added.

Financial year 2014-2015 markets were very strong. Financial year 2015-2016 was the year in which the benchmark indices were in the negative territory but the flows that the industry collected in both these years, of about Rs 19,000 crore, remained completely intact, said Barve.

The behaviour is significantly different from many years back, it is much more matured and it is coming on the back of what I think is reasonably patient capital, he further mentioned.

For full interview, watch accompanying video...