In April, contra/value equity mutual funds witnessed a 68% AUM jump to Rs 1,57,946 crore, attracting investors with a higher risk appetite. These funds invest in out-of-favour or undervalued stocks, offering potential returns amid market volatility.
Index funds and Index ETFs vary in investment requirements and cost structures, with ETFs requiring a demat account and having lower expense ratios compared to index funds.
Indian fund managers are embracing Warren Buffett s advice by turning to index funds, which offer simplicity, low cost, and stability. The rise of index funds in India has revolutionized the investment landscape globally and locally.
Special Opportunities Fund (SOF) is an investment fund capitalizing on unique opportunities below intrinsic value, inspired by Warren Buffett. WhiteOak Capital Mutual Fund and Samco Mutual Fund have launched similar funds. Alekh Yadav, Head of Investment Products at Sanctum Wealth, highlights the fund s strategy. Investors should consider the differentiated offerings and track record, with high-risk appetite recommended for SOFs.
Valuations in the largecap IT space remain expensive against their pre-COVID levels and the big names are still a few quarters away from turning a corner, says Hemang Kapasi.