 "Limit flows into midcap, smallcap mutual funds: AMFI asks asset managers")
The Association of Mutual Funds in India (AMFI) an industry body for asset managers, on Tuesday asked members to moderate inflows into small and mid-cap funds to protect investors, after strong inflows raised concerns of a potential crash.
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.
Small and mid-cap funds have seen high inflows, causing concern among authorities about how they would hold up in the event of a sharp market selloff.
The Nifty small cap 250 index (.NISM250) has surged 71% over the past 52 weeks and the Nifty mid cap 100 index (.NIFMDCP100) is up 64%. That far exceeds the benchmark Nifty's (.NSEI) 28% rise.
The Securities and Exchange Board of India (SEBI) has also asked fund houses to provide more information about risks associated with such funds, Reuters reported on Tuesday.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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