Despite the upswing in the market, equity-oriented mutual fund (MF) schemes witnessed net outflows for the seventh consecutive month, in January. Net outflows the difference between purchase and sale of MF units for the month stood at Rs 9,253 crore. Since July, investors have pulled out over Rs 42,200 crore from equity schemes, even as the Sensex rallied nearly 50 per cent during this period. While the quantum of outflows in January was lower when compared to the preceding two months, it was still greater than the seven-month average of Rs 6,000 crore, the data from Association of Mutual Funds in India (Amfi) shows.
Read more about Franklin Templeton gets investors nod for winding up six schemes on Business Standard. The fund house could take second vote for appointing a liquidator
Mid-cap mutual funds are expected to make solid gains: Why you should be picky while selecting schemes
Synopsis
Even with fund managers hunting within the confines of this narrow market cap band of Rs 10,000-Rs 30,000 crore, there is wide variation of quality within this basket. Some funds prefer to tilt towards larger mid-caps while some hunt much lower down the market cap ladder. Some funds diversify heavily to mitigate risk while a few take concentrated bets.
Mid-cap stocks made solid gains in 2020 and many expect this run to continue over the next 6-12 months. Funds investing in this space will ride this uptick, but simply chasing the category table toppers is not the right approach. Investors should take cognizance of aspects beyond mere returns.
Here s why you should be picky about mid cap mutual funds
Synopsis
Even with fund managers hunting within the confines of narrow market cap band of Rs 10,000-Rs 30,000 crore, there is a wide variation of quality within this basket. Experts contend that investors consider finer aspects before betting big in this space instead of just focusing on returns.
Mid-cap stocks made solid gains in 2020 and many expect this run to continue over the next 6-12 months. Funds investing in this space will ride this uptick, but simply chasing the category table toppers is not the right approach. Investors should take cognizance of aspects beyond mere returns.