The financial markets have been highly volatile in the past three months. This has prompted a flight-to-safety with investors rushing to assets that are perceived as relatively safe.
The Nifty 50 index is down about 25% from its highs in February. Bonds, on the other hand, have delivered positive returns for investors.
How have Indian individual investors responded to the increase in market volatility owing to covid-19, as well as the divergence in equity and debt returns?
While there is certainly a flight to safety towards assets that preserve capital and provide better liquidity, there were some contrarian bets as well.