In a letter to AMFI, Sebi said in the context of froth building up in small and midcap segments of the market and the continuing flows in the small and midcap schemes of mutual funds, trustees, in consultation with Unitholder Protection Committees of AMCs, shall ensure that a policy is put in place to protect the interest of all investors.
In 2023, mid cap funds saw inflows worth Rs 22,913 crore and small cap schemes saw inflows of Rs 41,035 crore. On the other hand, large cap schemes saw outflows of Rs 2,968 crore.
Funds having a high cash allocation may suggest a sense of caution towards the stock market. Generally, when funds hold a significant cash position, it implies that the market is overvalued or an anticipation of favourable investment opportunities in the future.
Small and mid-sized funds have seen high inflows, causing concern among authorities about how they would hold up in the event of a sharp market selloff. The Securities & Exchange Board of India (SEBI) has also been reviewing stress tests conducted by such funds, sources have previously said.
TD Securities downgraded shares of Maple Leaf Foods (TSE:MFI – Free Report) from an action list buy rating to a buy rating in a research report report published on Friday morning, BayStreet.CA reports. TD Securities currently has C$31.00 price objective on the stock, down from their prior price objective of C$40.00. Several other equities analysts […]