After a sharp run-up between 2020 and 2021, Small-cap mutual funds are down by around 12% on an average so far in the current calendar year due to sharp volatility in the equity market. However, Small-cap Funds have the potential to outperform its mid-cap and large-cap peers in the long run if the investors are patient enough.…
Investors in equity mutual funds made huge profits within a short span of time as the equity market recovered sharply from the lows of March 2020. However, most new investors in equity mutual funds who recently started their investment journey are currently staring at losses. Returns on all equity mutual fund sub-categories have turned negative…
Investors looking for tax saving options for the financial year 2022-23 can consider investing in Equity-linked Saving Scheme (ELSS). Factors such as the lowest lock-in period and higher wealth creation potential compared to other tax-saving instruments make ELSS a worthwhile option. However, ensure that you do not invest in any ELSS or tax-saving mutual fund scheme just because…
Mutual Funds are one of the best investment avenues to accumulate wealth for your various financial goals. Once you have zeroed in on the best and most suitable mutual fund scheme for your portfolio, the next question is, how do you go about investing in mutual funds? You can invest in mutual funds offline by…
The equity market is expected to tread on uncertain paths in the near term due to various factors such as rate hikes by the RBI and other global central banks, spiralling inflation, and persistent selling by FPIs. In such a situation, investors need to be cautious and focus primarily on the large-cap segment. Large-cap Funds…
The Securities and Exchange Board of India (SEBI) has allowed mutual fund houses to launch passive Equity-linked Saving Scheme (ELSS) with effect from July 01, 2022. Mutual Fund houses can launch passive ELSS (through Index Fund) under ‘other schemes’ category. Notably, passive schemes in other equity funds categories such as large-cap, mid-cap, multi-cap, etc. are already in existence.…
Passive Funds such as Exchange-traded Funds (ETFs) and Index Funds have gained a lot of momentum in the last few years. Mutual funds have launched a spree of passive funds in recent years to offer investors the benefit of diversification at a low cost. In the debt fund category, too, AMCs have launched quite a…
The Indian equity market is going through a rough patch amidst a spike in inflation, increasing global interest rates, policy rate hikes by the RBI, a depreciating rupee, and FPI sell-offs. It is noteworthy that during a stiff market correction, many stocks and sectors are temporarily discarded by investors and enter a cheap valuation zone.…
Mid-cap funds and Small-cap Funds lost significant values over the last few months owing to the sharp volatility in the equity market. In the last one month, Mid-cap Funds saw a decline in returns of around 8%, while Small-cap Funds fell by around 8.5% on an average. On the other hand, Large-cap Funds fared slightly…
Investors usually start investing in mutual funds looking at their past performance. However, it is of paramount importance that investors consider the risk that mutual fund will expose them to, after all risk and return are two sides of the same coin. Remember that in mutual fund investments, higher returns is generally associated with higher…
