Investors prefer 'safety' of large-cap schemes; redemptions down in June

According to fund managers, betting big on mid- and small-caps at this juncture can be fraught with risks

Large-cap schemes saw a sharp fall in redemptions in June, while fresh allocations to the category continued. Redemptions halved to Rs 2,196 crore in June, as investors preferred the safety of blue-chip firms over mid- and small-caps.

According to experts, redemptions had gone up as investors were booking profits in these schemes. 

“Market volatility ahead of elections had prompted profit-taking in these schemes. However, investor behaviour has changed following the election outcome,” said Sunil Subramanian, managing director of Sundaram Mutual Fund (MF).

In April and May, these schemes had attracted marginal net flows of Rs 50 crore in each month,