 "Two of the largecap-oriented mutual fund (MF) offerings — flexicap and largecap funds — witnessed a spike in investor interest in October amid a fall in the equity market.")
During the downturn, some funds managed to limit losses better than their peers and the benchmark. Investors are now debating whether to shift to these funds.
How they limited losses
Certain strategies contributed to these funds’ resilience. “Some fund managers went heavily into cash, allowing them to protect the downside when markets corrected,” says Kaustubh Belapurkar, director-manager research, Morningstar Investment Research India. Only a few fund managers took this approach, holding over 20 per cent in cash. Most maintained cash levels below 10 per cent.
Sector allocation also played a role. “Some sectors like financial services, healthcare, and information technology
