Tilt portfolio towards largecap funds to tap reasonable valuations

Consider going for a passive fund

mutual funds

Check the expense ratio and the tracking error while selecting an index fund or an ETF (lower is better)

Sarbajeet K Sen

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Mid and smallcap funds have been investors’ favourites in recent times. Since April 2022, they have pumped in Rs 33,486 crore into midcap funds, and Rs 48,650 crore into smallcap funds, according to data from the Association of Mutual Funds in India (Amfi). Over the same period, largecap equity funds have received barely Rs 3,398 crore.

However, investors’ perception towards large-cap funds may be changing. They received net inflows of Rs 723 crore in October 2023 after five consecutive months of net outflows.
Steady compounders

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First Published: Nov 17 2023 | 10:04 PM IST

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