Since this is a long-term investment, investors must do their homework and choose a fund manager carefully.
Shares of major private lenders, including HDFC Bank, Axis Bank, and Kotak Mahindra Bank, experienced a sharp selloff after their June-quarter results indicated persistent pressure on net interest margins (NIMs), despite healthy credit growth. This decline overshadowed gains in ICICI Bank and Punjab National Bank (PNB), which reported resilient or stronger-than-expected earnings.
Investors now have 27 passive smallcap funds to choose from 17 index funds and 10 ETFs.
A recent SBI Economic Research report indicates that the significant gap between credit and deposit growth, currently over 530 basis points, is likely to persist if geopolitical risks and external supply shocks continue. However, an improvement in deposit growth is anticipated with inflows into foreign currency non-resident (bank) deposits.
Smallcap funds give investors access to businesses that can grow much faster than the broader economy.
FPIs have already withdrawn Rs 2.6 trillion from Indian equities in 2026, exceeding the outflows recorded in any previous full calendar year.
'I don't see fear becoming a dominant factor for retail investors.'
The remarkable rise of smallcaps reflects the emergence of a broad set of specialised businesses operating in industries where the sectoral tailwinds remain considerably stronger than macroeconomic headwinds, points out Debashis Basu.
'Banking is the only sector that can see double-digit growth in FY27.'
The unprecedented rally in artificial intelligence (AI)-linked stocks has led to Indian companies being excluded from the top 10 constituents of the MSCI Emerging Markets (EM) Index for the first time in over two decades, raising concerns about concentration risk.
rediffGURU Ulhas Joshi answers your mutual fund queries.
Global brokerage Citi has reduced its Nifty 50 index target to 26,000 from 27,000, citing persistent geopolitical tensions, risks to corporate earnings growth, and concerns about India's role in the global artificial intelligence (AI) ecosystem.
Households should moderate large discretionary expenses for the time being.
'They should prioritise essential spending. They should maintain an emergency fund covering 6 to 12 months of expenses.'
World number one Jannik Sinner has the opportunity to complete his Grand Slam collection at the French Open, especially with Carlos Alcaraz's withdrawal altering the tournament dynamics. Sinner's improved clay court game and consistent performance make him a strong contender for the title.
Fixed deposits from nationalised banks delivered higher returns than equities, outperforming both inflation and stock market benchmarks.
Indian defence stocks have seen an average year-on-year gain of 67 per cent, driven by renewed interest following 'Operation Sindoor' and a broader increase in global geopolitical tensions, with the combined market capitalisation of 18 firms increasing by approximately 2.3 trillion.
Indian stock markets are expected to remain highly sensitive to geopolitical developments, particularly the US-Iran situation, and crude oil prices this week, with analysts also highlighting the influence of the rupee-dollar trend, foreign investor activity, and upcoming inflation data.
Punjab Kings co-owner Mohit Burman anticipates a significant increase in the next IPL media rights cycle, potentially reaching 20-30 per cent, driven by recent high-value franchise acquisitions and the league's consistent engagement.
HDFC Bank has launched an independent review by external law firms following the abrupt resignation of Chairman Atanu Chakraborty, who cited 'ethical concerns and practices within the bank' as the reason for his departure.
Asset managers are betting big on ETFs these days.
'We operate in an economy that is structurally positioned for long-term growth. As market levels rise over time, our AUM grows in line.'
Investors encountering underperformance must be patient.
'...especially pressure on the rupee, the current account deficit, and foreign exchange outflows.' 'The key question over the next several months is whether the government can prevent external turbulence from feeding into domestic economic pessimism.'
Largecap equity funds remain suitable for conservative and moderate risk-taking investors seeking relatively stable returns.
Domestic institutional investors, on the other hand, made a net investment of Rs 1.13 trillion during this period.
ICICI Bank delivered satisfactory results in the second quarter of 2025-26 (Q2FY26), sustaining return on assets (RoA) of around 2.3-2.4 per cent and improving asset quality. Provisions declined 26 per cent year-on-year (Y-o-Y) and 50 per cent quarter-on-quarter (Q-o-Q).
Largecap equities are less volatile than mid- and smallcap stocks, making them suitable for risk-averse investors.
Lenders are actively monitoring gold price volatility, prompting them to ask borrowers for additional gold collateral or partial principal repayment when loan-to-value (LTV) thresholds are breached, particularly for loans disbursed in February.
The RBI advisory follows a labour ministry request earlier this year seeking the central bank's expertise to identify gaps in EPFO's investment strategy and fund management practices, including accounting, risk management, and internal governance.
The message is becoming clearer: Employees who fail to meaningfully integrate AI into their work risk falling behind in performance assessments.
Retail investors' equity portfolios have significantly underperformed benchmark indices over the past 16 to 18 months.
Finance Minister Nirmala Sitharaman on Sunday announced an increase in the Securities Transaction Tax (STT) on Futures and Options trade with a view to discouraging small investors from speculative trading in derivatives, which led to a sharp decline in the stock market.
Passive funds have resumed gaining ground in the mutual fund (MF) industry after a slowdown in 2024, with their share of assets under management (AUM) reaching an all-time high in 2025. The surge has been driven largely by robust inflows into gold and silver exchange-traded funds (ETFs).
Investors seeking higher returns at relatively higher risk should consider allocation to smallcap equity funds.
'LIC will reduce but not fully exit its stake in IDBI Bank, which remains an important bancassurance partner,' says LIC of India' MD and CEO R Doraiswamy.
New investors or those with lower-than-planned exposure should add US-oriented funds through SIPs.
The Indian rupee weakened against the US dollar due to rising crude oil prices, geopolitical tensions in the Middle East, and foreign fund outflows.
The continued MF buying has pushed the equity holding of MFs to over Rs 50 trillion for the first time.
Sensex and Nifty post steepest weekly loss in over a year, falling nearly 3 per cent.
Investors and startup executives are calling for extending the period for an entity to be recognised as a startup from 10 to 15 years for deep-tech companies.
