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.…
Recently, the most searched term on Google was ‘What is Expense Ratio in Mutual Funds’. It seems that mutual fund investors are laying much emphasis on the Expense Ratio, along with past historical performance and mutual fund star ratings. Speaking of the Expense Ratio, it is nothing but the costs that are levied on the mutual fund scheme (by…
In the recently held February 2024 bi-monthly monetary policy, the six-member MPC, assessing the current and evolving macroeconomic situation, resolved to keep the policy repo rate for the sixth straight time in a row. Further, contrary to the expectations, it was decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with…
Last week, a day following the Interim Budget 2024, the capital market regulator, the Securities and Exchange Board of India (SEBI) released a consultation paper proposing to revise and revamp nomination facilities shares, bonds, units of mutual funds (held in both, demat and non-demat form, i.e. Statement of Account), units of Real Estate Investment Trusts (REITs), Alternative Investment Funds (AIF),…
The Interim Budget 2024 is a much-awaited event. Although a temporary budget — technically, a vote of account before the polls — most industries and individuals have high expectations. After all, it is Modi 2.0’s last budget before the upcoming Lok Sabha elections (to be held mostly in April and May 2024). Usually, on the…
In the two terms, the Modi-led-NDA government has done an impeccable job of rolling out and implementing certain structural reforms, such as… ✓ Skill India (aimed at improving the skill set of youth and making them employable) ✓ Startup India (to promote the culture of entrepreneurship and innovation) ✓ Make in India (to promote manufacturing…
The fascination of investors for mid and smallcaps doesn’t seem to be waning in the Indian equity markets. The S&P BSE Mid Cap Index Total Return Index and the S&P BSE Small Cap Index Total Return Index, after posting an absolute return of +47.2% and +48.8%, respectively in the calendar year 2023, continue to ascend…
