rediffGURU Ulhas Joshi answers your mutual fund queries.
Smallcap funds give investors access to businesses that can grow much faster than the broader economy.
The SIF vertical, which allows MFs to offer complex products to relatively sophisticated investors, has managed to garner scale in just seven months of the launch of the first products.
Their assets under management (AUM) rose from Rs 1.04 trillion (January 31, 2025) to Rs 1.75 trillion (January 31, 2026), an increase of 68.3 per cent.
Market maven Andrew Holland on why India missed the AI wave, why FIIs are leaving, why he personally invests in cryptocurrencies and why he's still betting big on the country.
NPS Vatsalya offers a disciplined investment avenue that parents can use to create intergenerational wealth by contributing even small sums.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
'Investing in these funds makes sense if their net yield over better-quality funds -- corporate bond funds or banking and PSU funds -- is meaningful.'
Sensex and Nifty post steepest weekly loss in over a year, falling nearly 3 per cent.
Investors seeking higher returns at relatively higher risk should consider allocation to smallcap equity funds.
'As we navigate uncertain waters, a conservative approach to largecap investing could provide a strategic advantage.'
Let reason, not emotion, guide your decisions.
The gold and silver holdings of domestic mutual funds (MFs) crossed the Rs 1 trillion mark for the first time in September, powered by a blistering commodity rally that lifted precious metal prices and drew fresh inflows into dedicated MF schemes.
The competitive intensity in the mutual fund (MF) industry is moving beyond scheme performance, cost structures, and distribution. In recent months, several fund houses have rationalised exit loads applicable on redemptions.
'Liquid ETFs help in cash management by enabling a smooth transition between equity and cash within the same settlement cycle, as they trade in the same segment as equity.'
'Investors need to understand that these schemes may not do well in the market that is in a bull run, but quality stocks would protect the downside.'
Mint Road's proposals on banks' M&A funding are cautious even as entrants root for more elbow room, and weigh business models.
'Investors should not go for lump-sum investments in infrastructure funds at this point.' 'The SIP route is the best to avoid any major disappointment.'
If you are overweight on fixed-income instruments, go for ELSS, and vice versa.
Business cycle funds aim to optimise returns by aligning their portfolios with different phases of the economic cycle. First-time investors, those who prefer stable sector allocations, and those averse to volatility should steer clear of them.
Only investors with a higher risk appetite should enter these funds.
While selecting a smallcap scheme, go with one that has a good track record and a stable fund manager.
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.
DSP Merrill Lynch on Tuesday restructured its global markets & investment banking business in India. Engaged in institutional sales, trading and investment banking, GMI is the firm's largest operating division by revenue and profitability.
Younger investors with long investment horizons may continue their SIPs.
Investors may take a 5 to 10 per cent exposure to silver. 'Have a long-term investment horizon when investing in silver ETFs to ride out short-term market fluctuations.'
Ask rediffGURU Ulhas Joshi your mutual fund queries.
'The idea is to invest where there is opportunity.'
Mutual funds (MFs) have lined up information technology (IT) funds, indicating that technology stocks are back on fund managers' radar after a hiatus. Over the past 18 months, stock prices for companies in the software space have either corrected or remained subdued. Fund houses have launched five IT-based sectoral funds in the past three months, with three of them taking the passive route.
Exodus of top managers an unintended side effect of roaring MF industry
Small and midcap schemes may impose restrictions on redemptions, cap employee withdrawals, and increase the exit load, while ensuring a proportionate liquidation of the portfolio during market crises to safeguard the interests of all investors. These measures have been outlined in the investor protection policies recently put out by mutual fund (MF) trustees. The policies for small and midcap schemes were prepared by MF trustees following directives from the Securities and Exchange Board of India (Sebi) earlier this month.
'Allocate 30% to 35% of your equity portfolio to mid-cap funds and 10% to 15% to small-cap funds.'
The outflows could be a result of a mix of factors led by the underperformance of some of the larger funds amid elevated return expectations.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
When we are unwell, we consult a doctor, take a prescription, and then buy medicines from a chemist. In finance, too, it is best to keep investment advice and product purchase separate, suggests Bindisha Sarang.
Actively managed debt funds with the flexibility to go long on duration made a strong comeback on the returns chart in 2023, thanks to softening bond yields. The average one-year returns of floater, long-duration, gilt, and dynamic bond funds, which ranged between 2.3 per cent and 4.5 per cent at the end of 2022, now stand at over 7.2 per cent, with some schemes delivering over 8.5 per cent, according to data from Value Research. Debt fund returns are inversely related to yields of underlying investments, meaning a decline in yields is positive for funds.
'Markets are factoring in a good show by India Inc in Q2.'
The country's six largest smallcap schemes would require more than 20 days to liquidate half of their holdings, despite most of them maintaining high cash levels and having considerable exposure to more liquid largecap stocks, stress tests conducted by fund houses reveal. For midcap funds, the time required to sell half of the assets of the top six schemes varies between seven and 34 days, according to disclosures made by asset management companies. The Securities and Exchange Board of India (Sebi) had called for such tests in the face of strong inflows into smallcap and midcap funds, despite concerns over high valuations, to keep investors better informed.
The change in debt fund taxation is seen as boosting the demand for hybrid funds. It is no surprise then that asset management companies (AMCs) have launched a raft of new products in the multi-asset category. However, they seem to be divided on the asset mix and approach. The multi-asset space, which provides fund houses ample scope to innovate, has seen five launches in as many months.
