Latest news with #AssociationofMutualFundsofIndia
Time of India
4 days ago
- Business
- Time of India
Retail investors flock to mid and smallcap mutual funds despite valuation concerns
Mumbai: Retail investors have continued to plough high sums into mid and smallcap mutual fund schemes as they chase high returns , despite elevated valuations and advisories on moving to safer ground. Retail investors have invested ₹20,255 crore into these mutual funds in the first three months of this financial year, accounting for 30% of total equity inflows of ₹66,689 crore. Association of Mutual Funds of India data also show that, over the past year, investors have poured ₹90,075 crore into these funds, accounting for 23% of total equity flows of ₹3.9 lakh crore. "A lot of retail investors continue to chase past performance," said Harshvardhan Roongta, principal financial planner, Roongta Securities. "Returns from mid and smallcap funds for three and five-year periods have been very high compared to large caps, which has kept investor interest intact." Midcap funds returned an average 21.3% over the past three years and 27.4% over five years, according to Value Research data. Smallcap funds returned 21.94% in three years and 31.28% in five. The Nifty 50 returned 13.55 in three years and 18.58% in five. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Agencies "Investors are looking to get exposure to some of the faster-growing segments of the economy, reflected in their preference towards midcap and smallcap funds," said Dikshit Mittal, senior fund manager, equity, LIC Mutual Fund. ICICI Prudential Mutual Fund said in its monthly outlook report for July that both mid and smallcap indices continue to trade at significantly higher valuation multiples compared with historical averages, even though they have cooled off from their September 2024 highs. In terms of price to earnings (PE) ratio, the Nifty Smallcap 250 is at 32 and the Nifty Midcap 150 at 33.4, while the Nifty 50 trades at a PE of 21.7. According to a study by Whiteoak Capital, while large caps are quoting at a 10% discount to their five-year average, midcaps are at a 14% premium and smallcaps are at a 28% premium to their long-term averages. Given the premium valuations of mid and smallcap funds, wealth managers have been asking investors to take a long-term view while allocating money and not expect high returns going ahead. "Aggressive investors should allocate only 10-15% of their equity portfolio to the mid and small cap space," said Vishal Dhawan, founder, Plan Ahead Wealth Advisors. Dhawan urged investors to stagger investments using SIPs and have at least a 10-year view, else they are likely to be disappointed.
Economic Times
4 days ago
- Business
- Economic Times
Retail investors flock to mid and smallcap mutual funds despite valuation concerns
Synopsis Indian retail investors are actively investing in mid and smallcap mutual funds. They are attracted by the high returns these funds have provided. Over the past year, significant investments have flowed into these funds. Experts advise caution due to high valuations. They suggest a long-term investment approach. Financial advisors recommend limiting exposure to these funds within the overall portfolio. Given the premium valuations of mid and smallcap funds, wealth managers have been asking investors to take a long-term view while allocating money and not expect high returns going ahead. Mumbai: Retail investors have continued to plough high sums into mid and smallcap mutual fund schemes as they chase high returns, despite elevated valuations and advisories on moving to safer ground. Retail investors have invested ₹20,255 crore into these mutual funds in the first three months of this financial year, accounting for 30% of total equity inflows of ₹66,689 crore. Association of Mutual Funds of India data also show that, over the past year, investors have poured ₹90,075 crore into these funds, accounting for 23% of total equity flows of ₹3.9 lakh crore."A lot of retail investors continue to chase past performance," said Harshvardhan Roongta, principal financial planner, Roongta Securities. "Returns from mid and smallcap funds for three and five-year periods have been very high compared to large caps, which has kept investor interest intact."Midcap funds returned an average 21.3% over the past three years and 27.4% over five years, according to Value Research data. Smallcap funds returned 21.94% in three years and 31.28% in five. The Nifty 50 returned 13.55 in three years and 18.58% in five."Investors are looking to get exposure to some of the faster-growing segments of the economy, reflected in their preference towards midcap and smallcap funds," said Dikshit Mittal, senior fund manager, equity, LIC Mutual Prudential Mutual Fund said in its monthly outlook report for July that both mid and smallcap indices continue to trade at significantly higher valuation multiples compared with historical averages, even though they have cooled off from their September 2024 highs. In terms of price to earnings (PE) ratio, the Nifty Smallcap 250 is at 32 and the Nifty Midcap 150 at 33.4, while the Nifty 50 trades at a PE of 21.7. According to a study by Whiteoak Capital, while large caps are quoting at a 10% discount to their five-year average, midcaps are at a 14% premium and smallcaps are at a 28% premium to their long-term the premium valuations of mid and smallcap funds, wealth managers have been asking investors to take a long-term view while allocating money and not expect high returns going ahead."Aggressive investors should allocate only 10-15% of their equity portfolio to the mid and small cap space," said Vishal Dhawan, founder, Plan Ahead Wealth Advisors. Dhawan urged investors to stagger investments using SIPs and have at least a 10-year view, else they are likely to be disappointed.
The Print
23-07-2025
- Business
- The Print
Mutual fund industry showcases resilience, growth: ICRA Analytics
Kolkata, Jul 23 (PTI) The mutual fund industry has showcased resilience and growth potential with strong momentum in systematic investment plans (SIP) and inflows across diverse categories, a report, issued by research firm ICRA Analytics, said on Wednesday. The research report, citing the data of the Association of Mutual Funds of India (AMFI), said total assets under management (AUM) at the end of June touched Rs 74.41 lakh crore, supported by bullish equity markets and sustained retail interest.
&w=3840&q=100)
Business Standard
23-07-2025
- Business
- Business Standard
Mutual fund industry showcases resilience, growth: ICRA Analytics
June marked a strong month for the industry with high inflows and robust investor participation across equity, hybrid and SIP categories, it said. Press Trust of India Kolkata The mutual fund industry has showcased resilience and growth potential with strong momentum in systematic investment plans (SIP) and inflows across diverse categories, a report, issued by research firm ICRA Analytics, said on Wednesday. The research report, citing the data of the Association of Mutual Funds of India (AMFI), said total assets under management (AUM) at the end of June touched Rs 74.41 lakh crore, supported by bullish equity markets and sustained retail interest. June marked a strong month for the industry with high inflows and robust investor participation across equity, hybrid and SIP categories, it said. Equity-oriented schemes continued to attract significant investor interest, with total net inflows touching Rs 23,587 crore in June. Debt funds saw moderate outflows in June, compared to May. Net outflow of debt schemes during June stood at Rs 1,711 crore, the report said. Hybrid funds witnessed high inflows at Rs 23,223 crore as investors favoured a balance risk-reward profile amid market volatility, the report added. SIPs remained a strong investment area with monthly contribution touching a new high of Rs 27,269 crore in June 2025. The growth drivers for SIPs are predominantly rising financial literacy, consistent returns from equity markets and ease of investing via digital platforms, the report added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
09-07-2025
- Business
- Mint
Defence orders bolster Solar Industries' firepower
Solar Industries India Ltd's stock is in the spotlight after being upgraded to large-cap by the Association of Mutual Funds of India (Amfi) in its latest classification. Given the strong outlook and the rising share of defence in overall revenues, the stock has risen almost 70% so far in 2025. Yet, at 90x its FY26 estimated earnings, the stock may be running ahead of its financials. The defence sector is expected to drive growth for the explosives manufacturing company. 'Solar's defence vertical has remained the fastest growing segment in the last five years (62% revenue CAGR over FY20-25), led by strong order inflows, healthy execution and a focus on continuously expanding the portfolio," pointed out Emkay Global Financial Services. Defence boost Defence revenues rose 160% in FY25, doubling their contribution to 18% from 9% in FY24. The management's revenue guidance of ₹3,000 crore for FY26 implies year-on-year growth of 120%, with the share in total sales climbing to 30%. Here, the defence ministry's award of a high-value order of over ₹6,000 crore for the Pinaka multiple rocket launcher system in February helps revenue visibility. Plus, Solar expects to receive some more orders that are being fast-tracked after the recent military escalation on the western borders. Also, the company's international business, accounting for 38% of FY25 sales, is seeing strong traction amid a volatile geopolitical situation. Some of its overseas loss-making subsidiaries turned around in FY25, thus taking aggregate pre-tax profits of subsidiaries up sharply by 82% to ₹656 crore. To leverage its international presence, Solar has recently operationalized its facilities in Thailand and Indonesia and is setting up new facilities in Saudi Arabia and Kazakhstan. On the other hand, the company's exposure to Turkey, at nearly 10% of total FY25 revenue, could face uncertainty because of its role in the military confrontation. Solar's international order book is ₹8,500 crore, to be executed over the next 4-5 years. Overall, the order book at FY25 End is ₹17,000, more than triple the figure of ₹5,100 crore in FY24. Its other customers include Coal India Ltd, which forms 13% of sales, and industrial clients across mining, housing, and infrastructure. Solar's estimated domestic market share stands at about 25%. Overall, FY26 revenues are expected to rise 33% over FY25's ₹7,500 crore seen in FY25. The company's FY25Ebitda margin at 27% was far higher than the guidance of 23% and should sustain or even improve with the rising share of defenceorders. Ebitda stands for earnings before interest, taxes, depreciation, and amortization. Capex push To leverage its presence in defence, Solar has been investing in new product development, in collaboration with the Defence Research and Development Organisation (DRDO). After the successful delivery of Nagastra-1, a loitering munition or a suicide drone, deployed during Operation Sindoor, it has developed Nagastra-2 and Nagastra-3 and expects to receive orders for those products. The other product, Bhargavastra, a counter-drone micro-missile, has passed trials at two levels for different applications. The capital expenditure plan of about ₹2,500 crore in FY26 is more than double the figure of ₹1,200 crore for FY25, to be metprimarily through internal accrual. While the defence business continues to do well, other domestic segments, such as coal mining, are seeing subdued demand and lower power consumption. Also, international business faces currency and country risk, although the potential impact would be lower with presence across a large number of geographies. The stock doubled from its 52-week low of ₹8,500 on 18 February after the receipt of the Pinaka order, further bolstered after Operation Sindoor. Despite the run-up, order inflows from defence would keep investors' interest alive in the stock.
