The cash pile within smallcap mutual fund (MF) schemes has grown over the past few months amid a relentless rally in stocks in this space. While fund managers usually don't make cash calls, incessant inflows and valuation discomfort have forced their hand. At the end of January, the top 10 schemes had over Rs 12,160 crore in cash, compared to Rs 8,700 crore in August 2023.
'We are cautious only on sub-sectors that have seen massive melt-up during the past six months.'
Equity mutual fund (MF) schemes have raked in Rs 46,200 crore in net lump-sum inflows in the past six months (ended February 2024), almost thrice the inflow in the previous six-month period.
'The markets could shrug off demonetisation as a one-off extraordinary period.'
Neelesh Surana, who manages Mirae Asset Tax Saver and Mirae Asset Emerging Bluechip, remains constructive on Indian equities from a three to five-year time frame.
'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.'
In 2015, foreign investors slowed net buying of Indian equities.
Post the correction over the past one year, we are seeing opportunities across sectors.
'We would advise investors to invest in a disciplined way in equities for the long term.'
'There is no need to do anything, let your SIPs get deducted every month, and stick to your allocation between equity, fixed income and emergency funds and your risk covers.'
Auto makers are in the midst of a rally with the NSE auto index up 17.5 per cent since the start of February.
Salil Dhawan reveals the MFs that have not only performed well in the past but have a promising outlook for the future too.
With stock prices at elevated levels, investors must cut valuation risks in their portfolio
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
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