Around 25 equity mutual funds consistently beat benchmarks in various horizons, including ELSS, value, flexi cap funds. Market cap based schemes like large cap, mid cap, ELSS, flexi cap showed strong performance. Investment decisions should consider multiple factors beyond past performance.
Rakesh Parekh talks about the key drivers for the market a combination of ample liquidity, pro-growth government policy direction, investments and capex entering an upcycle as well as corporate balance sheets that remain conducive for investments. He says: "We are encouraging clients to add to their equity positions with a long-term perspective in mind to take advantage of this opportunity."
The mutual fund stress-test results are being watched closely as small-cap funds saw outflows for the first time in 30 months in March, after the capital markets regulator highlighted its concerns over “froth” in the smaller-cap segments.
The market regulator has asked the MF houses to publish the stress test results on their respective websites by the 15th of every month. The main purpose of the stress test was to make mid and smallcap investors aware of the risks associated with and the impact of volatility on the portfolio.