Mid Cap Funds

Companies are tagged such based on their market value; their risk profiles vary

Nervousness ahead of key data release

Investors flocked to large-cap oriented mutual funds with influx of Rs 1,287 crore in January, making it the highest fund infusion in 19 months, as a significant run-up in small and mid caps prompted them to book profit. This is a huge turnaround following a net outflow of Rs 281 crore in December. Also, the quantum was 80 per cent higher than inflows of Rs 716 crore in January last year. The latest inflow helped push the asset base of large-cap equity category by 26 per cent to Rs 3 lakh crore at January-end from Rs 2.38 lakh crore a year ago. According to latest data by Association of Mutual Funds in India (Amfi), equity mutual funds focused on large-cap received inflow to the tune of Rs 1,287 crore in January. This was the highest level since July 2022, when the category saw an inflow of Rs 2,052 crore. Given the significant run-up in small and mid caps, investors are booking some profits and rebalancing into large-caps, Kaustubh Belapurkar, Director - Manager Research at ...

Valuation is comfortable for large-caps, but there is little margin of safety in the broader market categories, analysts said

Money received should be allocated to largecap funds and fixed-income instruments

The Bajaj Allianz Life Mid Cap Index Fund is designed to tap into the Nifty Midcap 150 Index's high-growth potential

The study also shows that over 50 per cent of the active flexi-cap schemes have not been able to beat the benchmark Nifty 500 TRI in 1-year, 3-year and 5-year time frames

They will outperform if GDP, earnings growth sustain, but global risks pose threat

Barring the past few months, small-cap and mid-cap funds outperformed significantly, compared to other categories until the start of calendar year 2022

Enter gradually, raise exposure once funds have developed track record

Twenty-five of 46 such schemes, or 54 per cent, outperformed the benchmark indices

Demand to improve as IT spending is expected to increase across sectors

Sebi's new circular may lead to an avoidable churn in the market

Since March 23 market lows, small-cap funds have given nearly 52% returns

The investment objective of the scheme is to generate capital appreciation by investing predominantly in mid-cap companies

Industry participants, however, say the run-up in market prices may not be enough to improve the sentiment of investors

But investors who want the flexibility to alter their asset allocation may avoid these 3-in-1 funds

At present, the market is favouring very select quality stocks that have managed to maintain their earnings even in difficult economic circumstances

The investor should also be able to evaluate the quality of the promoter-his background, competence level, and even his hunger to make it big

Instead of trying to pick individual stocks, take the mutual fund route