An empirical analysis of the effect of COVID-19 on the Indian mutual funds industry

Purpose: This research aims to examine and study the direct impact of change in COVID-19 cases and IIP index on the performance of NIFTY and selected mutual funds NAV performance for one year from the date WHO declared COVID-19 pandemic on 11 March 2020.

Approach/Methodology/Design: The study applies using daily NAV series of four mutual funds across sectors. ANOVA, Correlation, Regression, Descriptive Statistics.

Findings: There is a strong relation among NIFTY 50 and all the four mutual funds’ NAV performance, however, the relation between daily reported COVID-19 cases and NAV performance couldn’t be established.

Practical Implications: Economic turmoil has affected the disposable income of investors, the capital market is very volatile. This study will help the researchers and analysts to understand the relationship between COVID-19, NIFTY 50 index and select mutual funds NAV movements. And they can make a better decision under a similar situation.