Latest news with #AnandRathiWealth
Economic Times
13-05-2025
- Business
- Economic Times
Largecap mutual funds gain investor interest, inflows surge by 8% in April
Amid market volatility, large-cap mutual funds experienced an 8% surge in April inflows, reaching ₹2,671 crore, driven by investor preference for stability. Amid the heightened market volatility and global uncertainties, investors appear to be favouring the stability and resilience offered by largecap mutual funds as the category witnessed a surge of 8% in monthly category received total inflows of Rs 2,671 crore in April against an inflow of Rs 2,479 crore in March, by becoming the only category among diversified mutual funds to witness surge in inflows. On a yearly basis, the category saw a jump of 647% in the inflows, the highest among all diversified equity categories. The category received an inflow of Rs 357 crore in April 2024. Apart from diversified mutual fund categories, sectoral and thematic funds saw a jump of 1,076% in the monthly inflows. Also Read | India-Pakistan Tensions: How should mutual fund investors respond to navigate geopolitical risk? The experts attribute this month-on-month jump to safety and stability which large cap mutual funds provide in the volatile market as their higher liquidity and lower volatility make them a preferred choice when investors become cautious. 'This is mainly driven by a shift in investor sentiment towards safety and stability. Large-cap funds, which focus on blue-chip companies, are perceived as more resilient during volatile or uncertain market conditions. Their higher liquidity and lower volatility make them a preferred choice when investors become cautious,' said Hrishikesh Palve, Director, Anand Rathi Wealth. Another expert says that the large cap funds are attracting inflows due to their relative stability, better corporate earnings, and more attractive valuations compared to mid and small-caps. 'These factors, along with global uncertainties, have led investors to prefer the safety and visibility offered by large-cap companies, while other diversified categories have seen a month-on-month moderation in flows amid valuation concerns and profit booking,' said Sagar Shinde, VP of Research at a monthly basis, the other diversified equity mutual funds saw drops ranging between 1% to 151%. ELSS or tax-saving mutual funds saw a drop of 151% as the category witnessed an outflow of Rs 372 crore in April against an inflow of Rs 735 crore in March. Flexi cap funds, the category which received the highest inflow in April of Rs 5,541 crore, saw a decline of 1% on monthly basis from an inflow of Rs 5,615 crore in March. Also Read | HDFC Defence Fund increases stake in HAL, Solar Industries, and 4 other stocks in April A deep dive into the data of inflows by Association of Mutual Funds in India (AMFI) showed that in March, large cap funds was the only category among diversified mutual fund categories to see a drop in monthly responses. In March, the inflows dropped by 13% from an inflow of Rs 2,866 crore in February to Rs 2,479 crore in firmly believes that this 8% month on month surge likely reflects a shift in sentiment toward safer, more predictable equity segments and he also recommended that in the current market environment, increasing allocation to large caps can be a prudent move, especially for conservative investors or those looking to rebalance portfolios after strong gains in riskier the category witnesses a surge in inflows, Palve believes that in the times of heightened market volatility, it is very common for investors to move towards stable categories such as large-cap, as these categories offer stability & reduce overall portfolio volatility during turbulent also recommends that it is recommended for investors to build a strategy-based portfolio by diversifying the portfolio across the categories, such as market-cap-based funds and strategy-based funds, such as focused and value funds, as these will help to maintain stability and reduce overall portfolio volatility and additionally, it is recommended to follow a market cap mix of 55:22:23 across large, mid, and small caps. In April, the large cap funds offered an average return of 4.35% with Invesco India Largecap Fund being the topper which delivered 6.30% return in the same period. Samco Large Cap Fund lost the most of around 0.51% in the same period. On the other hand, mid cap and small cap funds gave an average return of around 3.81% and 2.01% respectively in April. In March, mid cap funds topped the average return chart among these three categories and gave an average return of 7.74%, followed by small cap funds which gave an average return of 7.66% and then large cap funds which gave an average return of 6.73% in the same period. Also Read | Defence ETFs gain up to 7% in two weeks amid India-Pakistan tensions With the category attracting more inflows, Shinde is of the opinion that while some of the inflows may be driven by near-term macro uncertainty, the trend could sustain if market volatility persists and the outlook for large-cap funds remains constructive, backed by steady earnings growth and valuation comfort relative to mid and looking at the performance and inflows, Palve is of the opinion that the shift is likely to be temporary, and it is mainly driven by a series of global uncertainties such as U.S. elections, tariff tensions, Russia-Ukraine war escalations, and Indo-Pak geopolitical tensions and historically, markets have shown resilience, with long-term performance driven more by corporate earnings and valuations than by short-term geopolitical shocks.'Going forward, we are seeing the large-cap category grow at 12 to 13% CAGR. Currently, the valuations are reasonably placed with negative froth; however, it is not recommended to invest solely in a single market cap or category. Investors should diversify across the market caps with a market cap mix of 55:22:23 across large, mid, and small caps,' he funds invest at least 80% of their assets in a large-cap company which is ranked from 1st to 100th on the Indian stock exchanges in terms of market capitalisation, with the flexibility to invest the balance 20% in other companies as per the discretion of the fund manager. If you are looking for recommendations, see: Best large cap mutual funds to invest in May 2025 (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Time of India
13-05-2025
- Business
- Time of India
Largecap mutual funds gain investor interest, inflows surge by 8% in April
Amid the heightened market volatility and global uncertainties, investors appear to be favouring the stability and resilience offered by largecap mutual funds as the category witnessed a surge of 8% in monthly inflows. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare The category received total inflows of Rs 2,671 crore in April against an inflow of Rs 2,479 crore in March, by becoming the only category among diversified mutual funds to witness surge in inflows. On a yearly basis, the category saw a jump of 647% in the inflows, the highest among all diversified equity categories. The category received an inflow of Rs 357 crore in April 2024. Apart from diversified mutual fund categories, sectoral and thematic funds saw a jump of 1,076% in the monthly inflows. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Learn How Smart Traders Use Data to Navigate Volatile Markets Trader Headline Learn More Undo Also Read | India-Pakistan Tensions: How should mutual fund investors respond to navigate geopolitical risk? The experts attribute this month-on-month jump to safety and stability which large cap mutual funds provide in the volatile market as their higher liquidity and lower volatility make them a preferred choice when investors become cautious. Live Events 'This is mainly driven by a shift in investor sentiment towards safety and stability. Large-cap funds, which focus on blue-chip companies, are perceived as more resilient during volatile or uncertain market conditions. Their higher liquidity and lower volatility make them a preferred choice when investors become cautious,' said Hrishikesh Palve, Director, Anand Rathi Wealth. Another expert says that the large cap funds are attracting inflows due to their relative stability, better corporate earnings, and more attractive valuations compared to mid and small-caps. 'These factors, along with global uncertainties, have led investors to prefer the safety and visibility offered by large-cap companies, while other diversified categories have seen a month-on-month moderation in flows amid valuation concerns and profit booking,' said Sagar Shinde, VP of Research at Fisdom. On a monthly basis, the other diversified equity mutual funds saw drops ranging between 1% to 151%. ELSS or tax-saving mutual funds saw a drop of 151% as the category witnessed an outflow of Rs 372 crore in April against an inflow of Rs 735 crore in March. Flexi cap funds, the category which received the highest inflow in April of Rs 5,541 crore, saw a decline of 1% on monthly basis from an inflow of Rs 5,615 crore in March. Also Read | HDFC Defence Fund increases stake in HAL, Solar Industries, and 4 other stocks in April A deep dive into the data of inflows by Association of Mutual Funds in India ( AMFI ) showed that in March, large cap funds was the only category among diversified mutual fund categories to see a drop in monthly responses. In March, the inflows dropped by 13% from an inflow of Rs 2,866 crore in February to Rs 2,479 crore in March. Shinde firmly believes that this 8% month on month surge likely reflects a shift in sentiment toward safer, more predictable equity segments and he also recommended that in the current market environment, increasing allocation to large caps can be a prudent move, especially for conservative investors or those looking to rebalance portfolios after strong gains in riskier segments. As the category witnesses a surge in inflows, Palve believes that in the times of heightened market volatility, it is very common for investors to move towards stable categories such as large-cap, as these categories offer stability & reduce overall portfolio volatility during turbulent periods. He also recommends that it is recommended for investors to build a strategy-based portfolio by diversifying the portfolio across the categories, such as market-cap-based funds and strategy-based funds, such as focused and value funds, as these will help to maintain stability and reduce overall portfolio volatility and additionally, it is recommended to follow a market cap mix of 55:22:23 across large, mid, and small caps. In April, the large cap funds offered an average return of 4.35% with Invesco India Largecap Fund being the topper which delivered 6.30% return in the same period. Samco Large Cap Fund lost the most of around 0.51% in the same period. On the other hand, mid cap and small cap funds gave an average return of around 3.81% and 2.01% respectively in April. In March, mid cap funds topped the average return chart among these three categories and gave an average return of 7.74%, followed by small cap funds which gave an average return of 7.66% and then large cap funds which gave an average return of 6.73% in the same period. Also Read | Defence ETFs gain up to 7% in two weeks amid India-Pakistan tensions With the category attracting more inflows, Shinde is of the opinion that while some of the inflows may be driven by near-term macro uncertainty, the trend could sustain if market volatility persists and the outlook for large-cap funds remains constructive, backed by steady earnings growth and valuation comfort relative to mid and small-caps. After looking at the performance and inflows, Palve is of the opinion that the shift is likely to be temporary, and it is mainly driven by a series of global uncertainties such as U.S. elections, tariff tensions, Russia-Ukraine war escalations, and Indo-Pak geopolitical tensions and historically, markets have shown resilience, with long-term performance driven more by corporate earnings and valuations than by short-term geopolitical shocks. 'Going forward, we are seeing the large-cap category grow at 12 to 13% CAGR. Currently, the valuations are reasonably placed with negative froth; however, it is not recommended to invest solely in a single market cap or category. Investors should diversify across the market caps with a market cap mix of 55:22:23 across large, mid, and small caps,' he funds invest at least 80% of their assets in a large-cap company which is ranked from 1st to 100th on the Indian stock exchanges in terms of market capitalisation, with the flexibility to invest the balance 20% in other companies as per the discretion of the fund manager. If you are looking for recommendations, see: Best large cap mutual funds to invest in May 2025 ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Economic Times
11-05-2025
- Business
- Economic Times
Mother's Day Special: How to secure her future with smart financial planning
As we honour mothers' strength, resilience, and sacrifices this Mother's Day, there's no better way to celebrate than by helping them secure their future with smart financial planning. Whether it's a young mother planning for her child's future or a retired mother seeking stability and income, smart financial planning plays a pivotal contacted two experts to learn how to build the portfolio allocation and plan financial security for the mothers. Also Read | Mutual fund SIP stoppage ratio shoots up to nearly 300% in April; fewer takers amid market volatility While planning the financial security for your mother, building a portfolio allocation plays a very important role. According to Bharti Sawant, Fund Manager at Mirae Asset Investment Managers (India), every mother should begin with setting up an emergency fund covering 3–6 months of expenses and this should form around 10–20% of the overall portfolio and for long-term growth, stocks and mutual funds are key, ideally constituting 40–70% depending on age and investment horizon. 'If the horizon is longer, for instance, 10+ years, they must prioritize pure equity funds. As age advances, gradually shift to hybrid funds, a blend of equity and bonds, gradually in order to mitigate risk. To inject stability, one can think of 'debt funds,' which provide steady income and lesser volatility, constituting 20-30% of the portfolio, particularly if the risk tolerance is low. Eventually, have a suitable Insurance cover for life and health. Insurance is not an investment but is crucial from the perspective of financial protection,' she added. Another expert believes that with changing times, more mothers are becoming financially aware and understanding the importance of investing to grow their wealth and achieve long-term financial independence and every mother has diverse goals, ranging from funding their children's education to pursuing personal aspirations like starting a business, depending on the phase of life they are in. However, what remains constant for all mothers is the need for financial planning and disciplined investing to achieve these goals, he adds.A young mother might have a long term horizon in order to create a corpus for her child's education. In another case, a mother with an older child might be saving to Guha Thakurta, Executive Director, Anand Rathi Wealth suggests that if one has short term goals then an allocation of 100% in debt would be the ideal allocation but someone with a medium term goal can have 60:40 ratio in equity and debt. However, a mother with a long-term goal can have an 80:20 ratio in equity and debt, he sharing the key strategy to build a good portfolio, Thakurta advices every investor including mothers to have a well-diversified portfolio and having products that have low correlation with each other and the best option is to opt for equity and debt as the two asset classes.'When investing in Equity, Equity Mutual Funds are a better option than Stocks as that provides the benefit of professional management and diversification. When investing in debt, if you are in the highest tax bracket, explore arbitrage funds that provide debt-like returns with equity-like taxation,' he advised. Also Read | Gold ETF record outflow for second consecutive month amid surge in prices. Is it profit booking? For mothers looking to balance growth and risk, mutual funds offer tailored solutions. Bharti Sawant recommends that if looking for long-term wealth creation, active equity funds are excellent, if for cost-effective and diversified market exposure then index funds serve the purpose. 'If you are looking to achieve a balanced approach to growth and stability, Hybrid/Balanced Funds combine stocks and bonds, offering potential returns while managing risk and in addition, 'debt funds' are also suitable for those who desire conservative investments, offering stability and regular income. Combining these categories can allow mothers to build a strong and growth-oriented financial portfolio while balancing risk, Sawant recommends. Thakurta while sharing that ultimately, it is important to maintain a diversified and goal-aligned mix of funds while regularly reviewing and rebalancing to stay on track with long-term financial objectives advices that one should invest across diversified categories, AMCs, and investment styles to avoid concentration risk. He emphasizes constructing a balanced mix of large, mid, and small cap funds (55:23:22) along with different styles like growth and value strategies, ensures resilience across market cycles and for broader diversification, investors can look into flexi cap and multi cap are several mothers who are either retired or are approaching retirement and there are young mothers as well. By sharing the two investment baskets required in one's portfolio, Thakurta mentions that one should structure her investments in for her emergency and immediate needs and another for long - term financial these two investment baskets, the long-term basket should focus on capital preservation and generating sustainable income and it's also important to define the purpose of this corpus like whether it will support her post-retirement lifestyle or be passed on to her children as a legacy, the experts recommending a strategy for 60-year old mothers, Thakurta said that an ideal SWP strategy for a 60-year-old with Rs 1 crore, can start with Rs 50,000 monthly withdrawals, increasing 5% each year to match inflation and with a 70:30 equity-debt mix and 11.4% annual growth, the investor could still end up with Rs 3 crore at age 85, ensuring steady income and long-term growth. Also Read | Small & mid cap MF inflows dip marginally, both attract over Rs 3,000 crore in April On the other hand, Sawant shares that the investment priorities changes for those mothers who are retired or are approaching retirement are different for a young advices that for those mothers who have retired or approaching retirement, the priorities must shift toward ensuring financial security and regular income and investment priorities should gravitate toward low-risk avenues like debt funds, income-generating tools like annuities or dividend-yielding funds and shares as these are less uncertain and capital-conserving in the returns that they young mothers have a longer horizon of investment and can tolerate a higher risk expecting better returns in the future and they ought to have a larger weightage of their portfolio in equity schemes to benefit from long-term gains, she the experts are of the view that it is also important that they review and rebalance their portfolio from time to time if their risk-taking capacity or situation in life is altered. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
07-05-2025
- Business
- Economic Times
Aiming for Rs 2 crore in 5 years? Your SIP strategy may be riskier than you think
Sanjeev from Pune aims for a Rs 2 crore corpus in five years through a Rs 1.27 lakh monthly SIP. However, a financial expert flagged his portfolio's overexposure to small- and mid-cap funds, constituting 67% of his investments. The expert recommended a more balanced asset allocation, suggesting diversification into safer, diversified equity funds to mitigate risk and ensure long-term stability. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Overexposure to Small- and Mid-Cap Funds: A Red Flag A Need for Balanced Asset Allocation Tired of too many ads? Remove Ads Diversifying for Stability and Long-Term Growth In today's era of rising financial awareness, many investors are taking charge of their wealth creation journeys through disciplined SIPs and diversified mutual fund in the pursuit of faster growth, some portfolios become lopsided, leaning too heavily toward high-risk segments. This imbalance, if unchecked, can hinder long-term goals despite strong intent and a recent episode of The Money Show on ET Now, Sanjeev, a focused investor from Pune, reached out for expert guidance on his mutual fund portfolio With a substantial monthly SIP of Rs 1.27 lakh, Sanjeev is aiming to build a corpus of Rs 2 crore in five the investment commitment is commendable, the underlying asset allocation raised red Sanjeev's portfolio , financial expert Shweta Rajani of Anand Rathi Wealth highlighted a critical issue — nearly 67% of his investments were channeled into small- and mid-cap included funds like Axis Smallcap, Nippon Smallcap, Quant Smallcap, SBI Magnum Midcap, HDFC Midcap Opportunities, and Motilal Oswal Midcap. While such funds have historically delivered impressive returns, Rajani cautioned against an excessively aggressive and mid-cap stocks are inherently more volatile and sensitive to market cycles compared to their large-cap bullish phases, they can outperform, but they are also the first to fall when markets turn turbulent. An overexposure to these segments can jeopardize portfolio stability, especially if the investor's goals are time-bound and recommended that a more prudent allocation to small- and mid-caps should not exceed 40–45% of the overall equity portfolio. This provides the necessary exposure to growth without compromising on downside Sanjeev's case, a heavy tilt towards riskier segments could create unnecessary stress on the portfolio, particularly if markets become volatile over the next few mitigate this risk, she advised stopping SIPs in funds such as Axis Smallcap, Quant Smallcap, SBI Magnum Midcap, and HDFC Multicap. Additionally, she suggested exiting from the hybrid ICICI Prudential Equity & Debt Fund, which may not be necessary given Sanjeev's high equity allocation and clear growth safer alternatives, Rajani recommended reallocating to diversified and contra-style equity funds that can provide a broader market exposure with relatively lower risk. These include:These funds can help maintain a balanced approach by investing across market capitalizations and strategies, helping cushion against sharp corrections in any one segment.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
07-05-2025
- Business
- Time of India
Aiming for Rs 2 crore in 5 years? Your SIP strategy may be riskier than you think
Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Overexposure to Small- and Mid-Cap Funds: A Red Flag A Need for Balanced Asset Allocation Diversifying for Stability and Long-Term Growth In today's era of rising financial awareness, many investors are taking charge of their wealth creation journeys through disciplined SIPs and diversified mutual fund in the pursuit of faster growth, some portfolios become lopsided, leaning too heavily toward high-risk segments. This imbalance, if unchecked, can hinder long-term goals despite strong intent and a recent episode of The Money Show on ET Now, Sanjeev, a focused investor from Pune, reached out for expert guidance on his mutual fund portfolio With a substantial monthly SIP of Rs 1.27 lakh, Sanjeev is aiming to build a corpus of Rs 2 crore in five the investment commitment is commendable, the underlying asset allocation raised red Sanjeev's portfolio, financial expert Shweta Rajani of Anand Rathi Wealth highlighted a critical issue — nearly 67% of his investments were channeled into small- and mid-cap included funds like Axis Smallcap, Nippon Smallcap, Quant Smallcap, SBI Magnum Midcap, HDFC Midcap Opportunities, and Motilal Oswal Midcap. While such funds have historically delivered impressive returns, Rajani cautioned against an excessively aggressive and mid-cap stocks are inherently more volatile and sensitive to market cycles compared to their large-cap bullish phases, they can outperform, but they are also the first to fall when markets turn turbulent. An overexposure to these segments can jeopardize portfolio stability, especially if the investor's goals are time-bound and recommended that a more prudent allocation to small- and mid-caps should not exceed 40–45% of the overall equity portfolio . This provides the necessary exposure to growth without compromising on downside Sanjeev's case, a heavy tilt towards riskier segments could create unnecessary stress on the portfolio, particularly if markets become volatile over the next few mitigate this risk, she advised stopping SIPs in funds such as Axis Smallcap, Quant Smallcap, SBI Magnum Midcap, and HDFC Multicap. Additionally, she suggested exiting from the hybrid ICICI Prudential Equity & Debt Fund, which may not be necessary given Sanjeev's high equity allocation and clear growth safer alternatives, Rajani recommended reallocating to diversified and contra-style equity funds that can provide a broader market exposure with relatively lower risk. These include:These funds can help maintain a balanced approach by investing across market capitalizations and strategies, helping cushion against sharp corrections in any one segment.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
