The equity market runs on fear and greed. In the last six months we have seen the extremes of both. First it was fear that led the market to fall by almost 40 per cent in a span of less than 50 days and again there was greed and fear of missing out that led us to gain more than 50 per cent from the lows.

In the last couple of weeks gold has turned out to be quite volatile and is down by almost 6 per cent from its recent high. Many investors now believe that gold has run its course as it is up by more than 50 per cent in the last one year and there is no merit in investing in this yellow metal.

It is a known fact that equity has always attracted greater attention than its distant cousin bond or debt when it comes to economic growth. The bond market, however, remains a key component of the financial system and its robustness and economic growth are positively correlated.

The unfolding of events in the mutual fund industry over the last couple of years has proved that debts are not as boring as they are considered to be. In a span of two years, the debt market has seen all – credit crisis, liquidity crisis and redemption pressure.

Buying and selling funds can be exciting especially if you buy low and sell high. Nonetheless, doing it often may be risky if you are investing for your retirement and your future is involved.

From the start of this month, all mutual fund investors have to bear stamp duty at a rate of 0.005 per cent on mutual fund purchases. The duty is irrespective of the amount you have invested and is applicable for every category of investment such as equity, debt and hybrid.

The equity market around the world has now accepted the fact that the pandemic is still around and there is a serious threat of a second wave of the virus outbreaks. This has made it nervous and it finds itself on slippery ground anew.

Uncertainty is the only certainty in the equity market. Despite all the advances made in equity research and technology used to do research, you cannot predict the occurrences of incidences such as the virus pandemic and its impact on equity.

Experience is the best teacher and it is bad experience that teaches you some of the best lessons. In that respect, many investors are now staring at large drawdowns in their portfolio.

The Indian mutual fund industry, and especially the debt mutual fund segment