Sticking to smaller and mid-cap companies can be more fruitful, suggests Devangshu Datta.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'...over the long-term can be done only by investing in equities.' 'And during weak macros, one needs t1o allocate more than drawing it down, because they offer the best entry point.'
'If you are invested in mid-cap and small-cap stocks, even if you are making losses right now, it is better to sell them now and sit on cash.'
T'I am not going to buy small- or mid-cap stocks at very high valuations if it doesn't make sense for the investors.'
Though the markets have lost ground since the past few sessions, analysts do not seem worried.
Analysts said retail investors are major participants in mid-cap and small-cap stocks and activity in this segment has increased over the past few months.
'Markets could face uncertainty in the short to medium term.' 'It would be prudent to invest in alternative asset classes, especially debt, for about a year.' 'Bank fixed deposits are offering rates as high as 9 per cent per annum and these can be used as a great hedging tool until equity markets stabilise.'
'Pockets of mid and small-cap indices are showing exuberance and are discounting even FY23 valuations now.'
Brokerages are expanding the universe of stocks they cover amid a boom in the market. Several stocks in the mid-cap universe are now tracked by more analysts than they were a year ago. For instance, SBI Cards and Payment Services is now tracked by 17 brokerages, compared to just four a year ago.
Data from Value Research analysed on five-year, three-year and one-year performances of active equity schemes to pick the best performers in popular scheme categories.
Mid cap companies tend to be under-researched ones, thereby providing an investment opportunity that is yet to be identified by the market. Investments in such companies offer high growth potential and the opportunity to clock above-average returns over the long-term (at least 3-5 years). On the flipside, since mid-sized companies are often under-researched, there is a fair chance that some reasons for "not investing" could be overlooked.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
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'If the third wave of Covid infections is as bad as the second one, the market may get very polarised with a preference for blue-chips with low volatility.'
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From the 30 Sensex firms, NTPC, Nestle, Titan, Kotak Mahindra Bank, Maruti, Hindustan Unilever, Bharti Airtel and HDFC Bank were the biggest gainers. HCL Technologies, Tata Consultancy Services, Adani Ports, Larsen & Toubro, JSW Steel, State Bank of India, Tech Mahindra and Bajaj Finance were among the laggards from the pack.
The equity market's recent downturn appears unlikely to slow the brisk pace of mutual fund (MF) scheme launches, at least in the coming weeks. Last month, fund houses introduced 21 new equity schemes, with another five launches already lined up for November. The number of filing with markets regulator, Securities and Exchange Board of India (Sebi), suggests this momentum will continue with asset management companies (AMCs) seeking approval for 21 more equity schemes in October.
Actively managed mutual fund (MF) schemes had been at the receiving end over the past few years for their inability to beat their benchmarks. However, the slump in shares of Adani Group companies - two of which are part of the benchmark National Stock Exchange Nifty50 index - have helped them improve their performance vis--vis exchange-traded funds (ETFs) or index funds.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Momentum funds can be 10 to 15 per cent more volatile than the Nifty 50.
The bulk of an investor's portfolio should be in shorter-duration funds of up to one year portfolio duration.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
To be fair, one year is too short a period to judge the schemes' performance.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
The total number of demat accounts in the country stood at 171.1 million as of August 31.
The total market valuation of all listed firms at the BSE had first hit Rs 100 trillion level on November 28, 2014.
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.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Investment in market leaders with a safety-first approach could yield reasonable returns across sectors.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
'Although mid- and small-cap funds have the potential for higher growth, they come with inherent higher volatility.'
Mid-cap and small-cap indices continued to be on investors' radar.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'The market won't wait for earnings to recover.'
Fundraising momentum is expected to accelerate further in the New Year, potentially surpassing 2024's record figures
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