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The impending merger between Housing Development Finance Corporation (HDFC) with HDFC Bank may create challenges for large-cap fund managers, most of whom are already grappling to match the returns generated by their benchmarks.
The combined weight following the merger in the benchmark Sensex and Nifty 50 indices is likely to be much higher than permissible limits for active mutual fund (MF) schemes.
This could have a bearing on the performance of large-cap funds if HDFC Bank shares outperform the markets, as the schemes will be forced to remain underweight on the stock to adhere to the single-stock cap.
Hybrid funds get investors attention; see Rs 27,220 crore inflow in June quarter
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Last Updated: Jul 13, 2021, 10:46 AM IST
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Hybrid funds are getting traction from investors with such instruments witnessing net inflow of Rs 27,220 crore in three months ended June, more than double from the preceding quarter.
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Hybrid funds are getting traction from investors with such instruments witnessing net inflow of Rs 27,220 crore in three months ended June, more than double from the preceding quarter.
Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as gold.
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