Largecap equity funds remain suitable for conservative and moderate risk-taking investors seeking relatively stable returns.
'If their allocation to certain segments have become high due to strong returns over the past three-four years, they should rebalance their portfolios and bring them in line with their long-term asset allocation.'
'There is a challenge in repositioning yourself, maybe reinventing yourself.'
Based on investment aims, mutual funds categorise their schemes as growth, income, balanced and money market schemes.
The Securities and Exchange Board of India does not seem to have understood the enormity of what funds have been up to. If Sebi does not crack down on mutual funds using cooked-up credit ratings to hide behind promoter funding, this is bound to grow into a systemic menace, says Debashis Basu.But MFs decided to become lenders without the legal backing to secure themselves, or the skillset to assess lending risk. If Sebi does not crack down on mutual funds using cooked-up credit ratings to hide behind promoter funding, this is bound to grow into a systemic menace, says Debashis Basu.
Rediff explains why the system, not the Budget, is the problem.
Value mutual funds have witnessed robust investor interest, garnering Rs 22,757 crore in inflows in 2024, nearly double the amount seen in 2023, fueled by impressive returns generated by the segment. This surge reflects a shift in investor focus towards fundamentally strong yet undervalued stocks.
Equity mutual funds attracted Rs 39,688 crore in January, driven by sharp inflow in small and midcap schemes, even as market volatilities continued. However, this was 3.5 per cent lower than the net inflow of Rs 41,156 crore registered in December.
Most first-time investors may be better served by diversified options such as flexicap or multi-cap funds, which already hold pharma and healthcare stocks.
Equity mutual fund (MF) schemes were flush with cash at the start of this month, even as fresh investments shrank in February. As of February 28, equity schemes from the top 20 fund houses held 6.8 per cent of their portfolios in cash, up from 6.1 per cent in January and 5.9 per cent in December 2024, according to a report by Motilal Oswal Financial Services.
Equity mutual funds witnessed a record inflow of Rs 41,887 crore in October, marking a surge of over 21 per cent on a month-on-month (MoM) basis, fuelled by robust investments in thematic funds. This also marks the 44th consecutive month of net inflow in the equity-oriented funds, highlighting the ever-increasing appeal of mutual funds among investors, data with the Association of Mutual Funds in India (AMFI) showed on Monday.
'Investing in these funds makes sense if their net yield over better-quality funds -- corporate bond funds or banking and PSU funds -- is meaningful.'
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
Among index funds, the most popular products are funds tracking the Nifty 50 and Sensex, says Dwaipayan Bose, and explains the finer points of selecting the right index mutual fund.
The top 20 fund houses held 6.8 per cent of their portfolios in cash as of May 31, down from a record high of 7.2 per cent in April 2025.
Meaningful market share would go to those who have the distribution strength to push their products, such as banks.
'Multi-asset funds have cornered 30 per cent of hybrid fund inflows in 2025, reflecting a growing preference for diversified portfolios that combine equity, debt and commodities.'
After a stellar 2023, the mutual fund industry sustained its growth momentum in 2024 with an impressive Rs 17 lakh crore surge in assets, driven by buoyant equity markets, robust economic growth, and increasing investor participation. Experts are predicting the positive trend will extend into 2025.
'People become guided by emotions, fear of missing out, and greed. They tend to invest in booming sectors that may prove exceptionally expensive.' 'Typically, that represents the peak, and subsequently, they lose substantially.'
Wondering if you did the right thing with your mutual fund investments?
Overlap refers to the same stocks appearing across fund portfolios.
Mutual funds are one of the best investment instruments to create wealth over long run. Here are the top 10.
The average return from the top 15 debt mutual funds in the last one year has been 25.96 per cent.
In an hour-long chat on rediff.com on Wednesday, financial planning expert Trideep Choudhary offered some valuable tips.
The characteristics of growth oriented mutual fund categories and the top funds under each category based on last 5 years' performance are reviewed here.
The value of MF exposure to REITs and InvITs which was at Rs 734 crore at the end of March 2020, rose to Rs 5,200 crore by the end of March 2023.
'Maintain a balanced approach with a preference for short-to medium-duration funds.'
rediffGURU T S Khurana answers readers' personal income tax queries
Equity funds like to identify newer avenues of investment and hence they create products around those new avenues. In the second part of this series, we look at the styles and themes of MFs.
'They are a poor fit for anyone with near-term goals, low volatility tolerance, or a need for steady income or liquidity.' 'First-time investors should typically avoid them.'
While investing in mutual funds, it is essential that you focus on the turnover rate percentage of a mutual fund, which is bought and sold every year.
'Allocating 5 to 10 per cent of one's portfolio and staying disciplined through market cycles helps in having a positive investment experience.'
The Securities and Exchange Board of India will notify the rules by August 1.
A primer on tax you pay on your mutual fund gains
The stock markets are at an all-time high. In such a situation, is it safe for you to invest your money in mutual funds? Wealth management expert Sanjiv Mehta says you can still bet on mutual funds.
Nikunj Saraf, Vice President Choice Wealth, answers your mutual fund queries.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances