'Money that came into mutual funds near the previous peaks -- the second half of 2017 and 2018 -- has in most cases experienced unflattering returns.' 'A large proportion of redemptions could be such inflows exiting when the market recovered sharply from July 2020 onwards.'
Among the stocks that have seen the largest cut by MFs, the DVR shares (shares with differential voting rights) of Tata Motors have seen a cut of 243 basis points (bps) in MFs' stake.
'This market is very expensive in some pockets, dirt cheap in some, and the belly of the market is reasonably valued.'
Sensex is now as expensive as in early 2008
During the dot-com bubble, it had touched a high of 1.9.
Mid- and small-cap funds dominate the list, opening up opportunity for investors to make contra bets in large-cap funds
Premium valuations era started in 2006 and went hand in hand with decline in the US interest rates
The growth premium India enjoyed has largely been lost.
'The market movement will be largely driven by earnings growth.'
For equity investors, the risk-to-reward ratio is worsening.
Experts say you may invest in small-sized funds and benefit from their nimbleness.
Longest period of price-earnings expansion in the index since 1996
'Most investors are still waiting for the winners to correct.'
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