The general perception is that spreading bets thinly dilutes the returns. It doesnt allow winners enough heft to influence fund returns. Far from getting bogged down, Nippon India Small Cap has put on a stellar performance despite its sharp weight gain. With several over-diversified funds giving good returns, large size may not be a red flag any longer.
"Existing asset managers who have large assets, on an active basis are also augmenting their product bouquet by adding passive strategies if they didn t already have it for two reasons. One is obviously, look at SEBI s mandate of one fund per category. Most of them already have funds within that. So, on the passive side, obviously, you can launch index funds and have a product available for investors who are looking for a passive investing option."
It’s been a little over a year since a massive front-running scandal erupted at Axis Mutual Fund. The firm has since set its house in order and is now readying for a fresh innings.
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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.