New Delhi, May 21 -- As the stock market remains on a bouncy track amid persisting geopolitical risks, increased inflationary pressure, and weak earnings, the buy-on-dip behaviour of retail investors has strengthened again.

However, this strategy has not been truly rewarding for investors as data reveal that even though mutual funds have been deploying more cash amid the ongoing correction over the past two years, only a limited set of schemes have managed to beat fixed deposits on a two-year CAGR basis.

According to brokerage firm Elara Capital, pure equity inflows during March-April accelerated nearly 40% versus the average monthly run-rate of the prior six months. This marks the third major "buy-the-dip" phase witnessed over the past...