The small-cap investing mania seems to be unceasing. The S&P BSE SmallCap Index, after a brief correction, is near its all-time high (of 46,821.39 points, made on February 7, 2024). It appears that the froth building in the small-cap segment (as highlighted by SEBI earlier this year) and the stress test data of Small Cap Funds are…
The year 2024 is going to be an eventful one. We have geopolitical tensions simmering (owing to tensions in the Middle East, there are attacks on vessels in the Red Sea by Houthis, the relations between the U.S. and China seem strained, China’s military activity in the South China Sea — to sort of threaten Taiwan,…
The geopolitical tensions in the Middle East are exacerbating. Within a fortnight after Israel’s suspected strike on Iran’s embassy in Damascus (Syria’s capital) — in which seven of Iran’s military advisers and three senior commanders were killed — Iran has avenged this attack with more than 300 projectiles (including 170 drones and around 120 ballistic…
The capital market regulator, SEBI, in mid-March 2024, warned of froth building in small cap and mid cap segments of the Indian equity market. It appears that most mutual fund investors have taken this guidance seriously. The Association of Mutual Funds in India (AMFI) data revealed that for the first time since September 2021, Small Cap…
After the stress test diktat for small cap funds and mid cap mutual funds, the capital market regulators, SEBI has its eyes on mis-selling in mutual funds. This is because in an industry that is in the race to garner AUM (through distribution and sales channels) — so that a hefty fund management fee is earned — often the…
The interest rates in the Indian economy, as you may know, are near the peak. In FY24 the RBI, so far, has maintained a status quo on the repo policy rate (at 6.50%) as CPI inflation — barring the spike in July and August 2023 — broadly remained within the comfort range. Graph 1: CPI inflation…
After the capital market regulator’s diktat on a stress test for small cap and midcap mutual funds issued earlier in March, the S&P BSE Small Cap Index particularly has corrected by -4.8% so far on a year-to-date basis (as of March 13, 2024). The S&P BSE Mid Cap Index and the bellwether index, i.e. the S&P BSE…
When investing in mutual funds — or any market-linked investment instrument for that matter — what most of us endeavour for is having some level of certainty of earning predictable positive returns. Don’t we? That is what brings consistency and dependability, which is important in the dynamic world of finance, where quite often uncertainty holds sway. Also,…
The year 2024, as you may know, is an election year. At least 64 countries have their national elections scheduled in 2024, including India, the U.S. countries in Europe, Mexico, Russia, Indonesia, Thailand, North Korea, Sri Lanka, and several others. Nearly half of the world’s population, or approximately 4.2 billion people, would head to the…
The fascination of investors in India for small caps seems to be unending. The optimism about India’s economic prospects, smaller companies participating in India’s growth story, the remarkable outperformance of the small-cap indices, the kind of returns generated, and increased investor awareness are some of the key factors behind the inflows into Small Cap Mutual Funds.…
