While past-year returns have been high, these funds are prone to significant drawdowns in tough economic environments
A eight-day rally has put the Nifty Smallcap 250 Index on course for reclaiming the Feb. 27 level when the securities regulator flagged the risk of a potential bubble in the smaller companies
Midcap, smallcap stocks have seen a big fall in the last few weeks. Here is what experts suggest on how you can get your money back.
Bulls say the blowout returns in smaller companies stem from robust corporate profit growth in recent years
A gauge of small- and mid-cap stocks has returned 60 per cent in the past year, compared with a 23 per cent advance in India's main S&P BSE Sensex Index
Those having considerable amounts of both should rebalance and stay put
Sebi's communication shows heightened regulatory concern on the surging inflows into Indian small- and mid-cap mutual funds and any potential ripple effects on the financial system
Heavy inflows have sent the Nifty small cap 250 index surging 71% over the past 52 weeks and lifted the Nifty mid cap 100 index 64%. That far exceeds the benchmark Nifty's 28% rise
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While Sebi has completed one round of stress test reviews, it wants funds to test for more adverse scenarios, report says
Meanwhile, news reports suggest the Securities and Exchange Board of India (Sebi) is in discussions with the mutual fund industry to carry out a comprehensive stress test of equity funds
According to data from the AMFI, as of December 6, 2023, the average one-year returns for 23 small-cap funds stood at 32.68 per cent
The investment objective of the scheme is to generate capital appreciation by investing predominantly in small-cap stocks.
WhiteOak Capital Large & Mid Cap Fund will predominantly invest in Large and Mid Cap stocks with an aim to create a factor diversified balanced portfolio with high active share
According to CIOs and Portfolio Managers gathered at the Franklin Templeton APAC Investor Forum 2023, opportunities can also be found in mid-cap and small-cap growth businesses, which are undervalued
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Stocks in the top and bottom performance quartiles had different free floats. Delivery value, relative to free float, was much higher for the top performers
Subramaniam says pharmaceutical and healthcare sectors are reasonably valued and are showing incremental improvements in their balance sheets
Even though net inflows into small-cap funds were down by 37% at Rs 2,678.47 in September 2023, fund houses are undeterred when it comes to new fund offers.
DSP Mutual Fund will also launch a smallcap fund this year to take advantage of the inflows to the segment, Parekh said