I saw a Mr. Prashant Jain Interview. He said its always a trend that inflows increase during overvaluation and is maximum at peak. It reduces during correction and inflows dry up totally at bottom. This makes MF manager task difficult due to redemptions.
However, if you notice last 1-2 years. Indian retail have done the opposite. During peak of Oct crash, MF inflows increased. Now it has become normal/average. will remain similar if market moves sideways. Incase market corrects viciously again, my guess is inflows will shoot up, contrary to the trend during 2008-2013 , which Mr. Jain mentioned. Somewhere i think Indian retail investors have become comfortable with equities. I know, many of my conservative, friends now doing SIP are absolutely comfortable to hold for 10-15 years …Just my 2 cents.