Redemption in smallcap funds can create challenges
While the industry has always had large and midcap funds, there is no scheme that offers exposure only to mid- and smallcap stocks
Capital markets regulator Sebi has asked mutual fund houses to put in place a framework to safeguard investors, who invested in smallcap and midcap schemes, amid a "froth building up" in these categories. Also, the regulator has suggested steps such as restrictions on inflows in these segments, portfolio rebalancing, and laying guidelines to safeguard investors from the first-mover advantage of redeeming investors. This came in the backdrop of strong flow in the small and midcap schemes of mutual funds over the last few quarters. In a communication to Association of Mutual Funds in India (AMFI) on Tuesday, Sebi asked the industry body to inform trustees of all the mutual fund houses to frame a policy to protect the interest of investors of smallcap and midcap schemes. "In the context of the froth building up in the small and mid-cap segments of the market and the continuing flows in the small and mid-cap schemes of mutual funds, trustees, in consultation with unitholder protection
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AMFI made the request in a letter dated February 27, which has not been previously disclosed. It came following a communication from India's market regulator
Data needed to gauge liquidity risks in smallcap funds, say MF executives
Investors can now put a maximum of Rs 200,000 as lumpsum each month and Rs 25,000 per month through the systematic investment plan (SIP) route
Top 10 funds sitting on Rs 12,160 cr cash, up 40% from Aug '23; cash as percentage of AUM rises to 6.1%
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The broader market breadth was weak with 2,813 stocks declining and 823 gaining on the BSE
Measured against 2018 baseline, mcap of largest smallcap stock has surged 2.5x
Closing Bell on October 26, 2023: In the broader market, the BSE MidCap index shed 0.94 per cent, and the BSE SmallCap index fell 0.19 per cent
Flexicap, ELSS, and multicap schemes have piled on more mid and smallcap flavour since March
Despite experiencing sharp intraday fluctuations in recent sessions, the VIX index has consistently settled below 12
Even as Sebi's classification norms for MF schemes approach six years of completion, we examine the three-year rolling returns of schemes in the top categories to identify the best performers
Data shows that markets may have mispriced the disinflationary trend that is gaining traction along with a stable demand and supply situation for government bonds, said Parekh
Selective small-cap stocks may rally up to 25 per cent, as per their respective charts
In July, the S&P BSE Smallcap index surged 7.4 per cent as compared to 5.7 per cent rally in the Midcap index, and a modest 2.8 per cent gain in the Sensex.