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Why stock holdings are likely to get concentrated going forward

With investors increasingly putting their money in index funds, the difference between the performance of the stocks in the index and those outside it will continue to widen

Index funds saw max inflows in FY22-23, 83 percent of which was into target maturity funds

While it’s getting tougher for actively-managed funds, especially large-cap funds, to outperform their benchmarks, passively-managed equity funds have been slow to catch up. The real winner in this category is the Target Maturity Funds. But an encore in FY23-24 seems unlikely, though.

AMFI March mutual fund numbers out, net equity inflow at Rs 20,190 crore, highest in a year

The highest net outflows in the income/debt-oriented category was seen in liquid funds, which saw net selling of Rs 56,924.13 crore during the month.

Is there a need to invest in multiple schemes of the same fund categories?

In the large-cap fund category, there is a lot of overlap between schemes, which is limited in midcap and specially small-cap funds.

Underperformance of active largecap funds widened in 2022

ELSS funds achieved the second-highest long-term survival rates across all categories in the SPIVA India Scorecard, with 77.8 percent of them still surviving after 10 years.

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