Mutual fund investors brace for weak returns in closed-end schemes

Several of these were oriented towards mid, small-cap stocks, which did not play out as expected

Mutual fund (MF) investors in closed-end equity schemes maturing in the calendar year 2020 are bracing for tepid returns, as most of these schemes have underperformed their benchmarks, so far.  

According to the data from Value Research, of the 14 schemes maturing in the next few months, 10 have underperformed their benchmarks since their launch dates, and others are largely on a par with their respective benchmarks.

Experts say several of these funds were oriented towards mid- and small-cap stocks, which have not played out as expected.

“Even within large-caps, we have seen only a few stocks doing well. Within