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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

Mutual funds, Investments, Funds. Photo: iStock
Photo: iStock

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 ...