Latest news with #SagarShinde
Time of India
2 days ago
- Business
- Time of India
RBI slashes rates by 50 bps: What it means for debt mutual fund investors
The MPC shifted its policy stance from 'Accommodative' to 'Neutral,' RBI Governor Sanjay Malhotra announced in his monetary policy speech. He also revealed that the MPC decided to reduce the Cash Reserve Ratio (CRR) by 100 basis points, lowering it from 4% to 3%. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads After the Reserve Bank of India reduced the repo rate by another 50 basis points to 5.50% and a 100 basis point CRR cut, the mutual fund experts believe that the fixed income landscape has turned even more favorable for investors. Further, the CRR cut is a strong liquidity injection, which will further push down short-end rates and improve system-wide liquidity.'While duration strategies like gilt, long-duration, and dynamic bond funds remain relevant, the combination of already-priced-in rate cuts (via the OIS curve) and surplus liquidity suggests that returns from duration could moderate going forward,' Sagar Shinde, VP of Research at Fisdom shared with ETMutualFunds.'Therefore, a balanced allocation across both long-duration funds and 2–3-year high-quality accrual strategies (like banking & PSU or short-duration funds) is prudent. Categories that benefit from declining short-end yields and tight credit spreads may perform well in this environment,' he further is the third consecutive rate cut by the RBI in the current calendar year and the second one in the current financial year. This marks the third consecutive cut under Governor Malhotra. In February and April, the apex bank had reduced the repo rate by 25 basis points each. Before this, the repo rate was held at 6.5% for 11 consecutive addition, the MPC changed its policy stance from 'Accommodative' to 'Neutral', RBI Governor Sanjay Malhotra announced in his monetary policy speech. RBI Governor also announced that the MPC decided to cut the Cash Reserve Ratio (CRR) by 100 basis points (bps) to 3% from 4% earlier.'The near-term and medium-term outlook now gives us the confidence of not only a durable alignment of headline inflation with the target of 4 per cent, as exuded in the last meeting but also the belief that during the year, it is likely to undershoot the target at the margin.,' said the RBI Governor, Sanjay to the expert, the combination of a 50-bps rate cut, a neutral stance, and a 100 bps CRR cut signals that the RBI is focused on boosting transmission and improving liquidity across the curve and with surplus liquidity already in place and now further enhanced, short-term rates could stay depressed, benefiting accrual strategies at the short end.'Simultaneously, there's scope for some mark-to-market gains in longer-duration strategies, though the forward OIS curve already factors in much of the easing. Hence, a barbell approach—mixing duration (to capture any residual rally) and short- to medium-term accrual strategies (to harness steady income from high-quality credit)—is best suited for this phase of the cycle,' Shinde further shares with Governor in his policy statement mentioned that, 'On the financing side in 2024-25, foreign portfolio investment (FPI) to India dropped sharply to 1.7 billion US$, as foreign portfolio investors booked profits in equities. Net foreign direct investment (FDI) too moderated'Shinde thinks that the 100 bps CRR cut, on top of the rate cut and stance shift, enhances liquidity across the curve and keeps a lid on yields, particularly at the shorter end.'While longer-term investors (3–5+ years) can still benefit from duration strategies, the limited headroom for further rate cuts suggests that short- to medium-term accrual strategies also deserve meaningful allocation. Investors should adopt a laddered horizon, combining both short (2–3 year) and long (5+ year) maturity strategies, to optimize for both income and capital appreciation while managing reinvestment and duration risks in a fully liquid market environment,' Shinde should always choose a scheme based on risk appetite, investment horizon, and goals.: 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.
Time of India
27-05-2025
- Business
- Time of India
Nifty up 13% from April's low. How should mutual fund investors alter their investment strategy?
With the benchmark index Nifty 50 up nearly 13% from April's low and touching 25,001 on Monday, market experts note that while many investors may consider profit booking, mutual fund investors, particularly those with a long-term outlook, are advised to stay invested. The recent highs reflect strong underlying earnings growth, supportive macro factors, and positive investor sentiment, rather than a signal to exit. 'Timing the market is challenging, and exiting prematurely could mean missing out on further upside or the power of compounding. That said, investors should use this opportunity to review their asset allocation and rebalance if their equity exposure has gone significantly above their target levels. Booking partial profits and reallocating to underweight asset classes, such as debt or gold, could be considered purely from an asset allocation standpoint—not as a reaction to the index level,' said Sagar Shinde, VP Research, Fisdom. Also Read | Nifty still below peak, but why are these mutual funds at record-high NAVs? 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 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected 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. 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 3BHK Transformation Possible for ₹4.5 Lakh? HomeLane Get Quote Undo Another expert advocates the same opinion that unless one has short-term financial needs or the portfolio has deviated significantly from the defined asset allocation targets, staying invested is the wiser choice for long-term wealth creation, as the Indian economy remains on a strong footing, supported by robust earnings, government reforms, and macroeconomic stability. 'For long-term investors, trying to time the market based on index levels often results in missed opportunities. Instead of exiting the market entirely, consider rebalancing your portfolio—trim some exposure in overvalued sectors or schemes and reallocate towards laggards or more balanced options if needed. This allows you to capture gains while keeping your investments aligned with your financial goals,' recommends Adhil Shetty, CEO of Live Events The index stood at 22,161.6 on April 7, marking the lowest level in the current financial year so far. Over the past three months, it has risen by 10.22%, while its six-month gain stands at 2.60%. The Nifty 50 has gained 8.25% over the last year and 5.11% so far in the current calendar year. Nifty50 touched its 52-week high level on September 27, 2024 of 26,277 and is currently down by nearly 5% from its 52-week high level. As the benchmark index rises, experts recommend that investors continue their SIPs but exercise caution with lump-sum investments, advising them to stagger these investments over time. Shetty of Bankbazaar recommends that SIP (Systematic Investment Plan) investors should continue their regular contributions regardless of market levels as SIPs are designed to eliminate the need for market timing by investing a fixed amount at regular intervals, which helps average out the cost of units over time and this approach works particularly well during volatile or high market phases, as it ensures discipline and allows investors to benefit from market corrections through rupee cost averaging. 'On the other hand, investors with lump-sum amounts should be cautious when the market is at all-time highs. Rather than deploying the full amount at once, consider a staggered investment strategy—spread the investment over 3 to 6 months or even longer through Systematic Transfer Plans (STPs) into an equity fund. Alternatively, deploying the lump sum can offer exposure to equities while managing downside risks. This measured approach helps reduce regret from potential short-term corrections and aligns better with long-term wealth-building goals,' he added. Also Read | 30 equity mutual funds multiply lumpsum investments by over 2 times in 3 years To continue with the SIPs in the current market scenario, Shinde adds that lump-sum investors, however, should adopt a staggered approach as deploying the entire amount at current levels could expose them to short-term volatility. 'A Systematic Transfer Plan (STP)—where the lump sum is parked in a liquid or ultra-short duration fund and gradually moved into equities—can be an effective method to mitigate timing risks. Alternatively, if the investor has a medium- to long-term horizon, partial deployment in balanced advantage or multi-asset funds can serve as a middle ground, offering market participation with downside buffers,' Shinde adds. ETMutualFunds looked at the performance of equity mutual fund categories since the April low and found that out of 21 categories, 19 offered double-digit average returns and two gave single-digit returns in the same time frame. Since April 7, the Auto sector based funds offered the highest average return of 18.30%, followed by technology based funds which gave 17.04% average return in the same period. International funds gave 16.07% and infrastructure funds gave 14.86% average return in the same period. Midcap and smallcap funds gave 14.82% and 14.71% respectively since April's low level. Contra and largecap funds were last in the list of double-digit gainers. The categories gave 11.77% and 11.22% respectively in the mentioned period. Consumption based funds and pharma and healthcare funds gave 9.83% and 8.50% average returns respectively in the mentioned period. Post the categories gaining in double-digits and market above 25,000 mark, Shinde advices investors fresh investments at market highs should be made with a margin of safety and diversification in mind and for new investors, it's important not to shy away from equity markets entirely—rather, the focus should be on how and where to deploy capital. Also Read | Planning to invest Rs 10 lakh for up to 2 years? Shiv Gupta of Sanctum Wealth recommends this 'Conservative hybrid funds or balanced advantage funds (BAFs) offer a prudent starting point. These funds dynamically manage equity exposure based on valuations and volatility, making them ideal for entry during elevated market levels' 'Flexi-cap and multi-cap funds are also well-suited for long-term investors due to their allocation flexibility across market capitalisations. For global diversification, international funds—especially those focused on US or developed markets—are also attractive, given their recent rebound and long-term growth potential. In short, invest, but do it with a category that aligns with your risk appetite & time horizons,' he further added. On the similar lines, Shetty advices that quality-focused index funds that invest in fundamentally strong companies can offer consistent returns with relatively lower risk and the key is to match the investment horizon and risk tolerance with the right fund category and investing through SIPs or staggering the investment through STPs (Systematic Transfer Plans) can further reduce timing-related risks. 'Investing at market highs requires a disciplined and cautious approach, especially for new investors who may be concerned about near-term corrections. Rather than shying away from investing altogether, new entrants can consider fund categories that offer built-in risk mitigation and asset allocation flexibility. Quality-focused index funds that invest in fundamentally strong companies can offer consistent returns with relatively lower risk. The key is to match your investment horizon and risk tolerance with the right fund category. Investing through SIPs or staggering the investment through STPs (Systematic Transfer Plans) can further reduce timing-related risks,' the CEO of Bankbazaar advised. One should always consider risk appetite, investment horizon, and goals before making investment decisions. ( 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
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
08-05-2025
- Business
- Economic Times
MF Tracker: Can this large & mid cap scheme add spunk to your portfolio in this market?
Large and mid-cap funds offer a balanced exposure. Investors should consider their risk appetite and investment horizon. Motilal Oswal Large & Midcap Fund, a large & mid cap fund, offered the highest CAGR in the last five years based on daily rolling returns compared to all equity mutual funds excluding the sectoral and thematic funds, an analysis by ETMutualFunds the last five years, the scheme has offered 25.40% CAGR based on the daily rolling returns. A further analysis showed that the scheme stood at the third place in the three year return chart based on daily rolling returns and offered a return of 24.33% in the same period. Launched on October 17, 2019, the scheme is given five star rating by ValueResearch and four star rating by Morningstar. Also Read | India-Pakistan conflict: How should mutual fund investors deal with geopolitical threats? Based on trailing returns, in the last three and six months, the scheme has underperformed against category average and benchmark. In the last three months, the scheme lost 1.39% against a gain of 1.82% by the benchmark (NIFTY LargeMidcap 250 - TRI) and 0.85% as category average. In the last six months, the scheme lost 7.38% against a loss of 1.73% by the benchmark and a loss of 3.25% as category average. In the last one, three, and five years the scheme has outperformed benchmark and category average both. In the last one year, the scheme delivered a return of 11.80% against a return of 7.53% by the benchmark and 7.62% as the category average. In the three year horizon, the scheme offered a return of 26.22% against 19.16% by the benchmark and 18.46% as the category average. In the last five years, the scheme delivered 29.97% compared to 28.26% by the benchmark and 26.09% as the category the trailing returns delivered by the scheme in the last three years were the highest compared to its peers and in the last five years were the second highest in the category. A monthly SIP made in the fund at the time of its inception would have been Rs 1.22 lakh now with an XIRR of 22.68%. The same SIP amount would have been Rs 1.07 lakh now in the last five years with an XIRR of 22.86%. In the last three years, the value of the same investment would have been Rs 50,783 with an XIRR of 22.03%.If the investor chose the lumpsum investment mode, the value of Rs 1 lakh invested in the fund at the time of its inception would have been Rs 2.93 lakh with a CAGR of 21.36%. In the last five years, the value of the same lumpsum investment would have been Rs 3.59 lakh with a CAGR of 29.19%.The current value of Rs 1 lakh if invested three years ago would have been Rs 2 lakh now with a CAGR of 26.05%.Sagar Shinde, VP of Research at Fisdom believes that the fund has delivered strong long-term performance but the short-term performance has been underwhelming, driven largely by stock-specific corrections in key overweight sectors such as electrical equipment and consumer durables.'The fund follows a growth-oriented investment style, and the high-growth segment came under pressure from January, as currency volatility and deleveraging by leveraged investors triggered a sell-off in risk assets. Given the fund's high active share and concentrated portfolio, such short-term drawdowns are not unusual,' he Fisdom's internal research, Shinde explains that, 'Despite these temporary headwinds, the fund continues to score well on our internal rating evaluation framework—across consistency, risk-adjusted returns, performance across market cycles, and fund manager pedigree. The recent underperformance appears more cyclical and stock-specific than structural, and the fund remains well-positioned for long-term investors.' Also Read | Are smallcap mutual funds losing shine? Returns dip sharply up to 18% in 2025 On the basis of yearly return since 2020, the large & mid cap fund has never offered negative returns. In 2020 and 2021, the scheme has offered 12.56% and 40.82% returns respectively. In 2022, the scheme could deliver 1.66% return against a loss of 13% by other large & mid cap funds in the same year. In 2023 and 2024, the scheme offered 38.05% and 46.11% returns respectively. Compared to other large & mid cap funds, the returns offered by Motilal Oswal Large & Midcap Fund in 2023 and 2024 were the highest. Note, we considered yearly returns since 2020 as the fund was launched in October large & mid cap fund had 97.94% in equity, and 2.06% in others as on March 31, 2025. In comparison to the large & mid cap category, the scheme is overweight on equity and underweight on others. The category on an average had 96.53% in equity and 3.47% in others. Being a large & mid cap fund, the scheme invests 36.24% in large caps, 37.82% in mid caps, 4.34% in others and 21.60% in small the Sebi mandate of at least 35% allocation in large cap and mid cap each, the expert recommends investing in a large & mid cap fund as it can present a compelling proposition in the current market is of the opinion that large & mid caps offer a balanced exposure—combining the stability of established businesses with the growth potential of emerging leaders and large caps look relatively attractive post recent underperformance, while select mid caps continue to deliver on earnings and sectoral tailwinds.'Given elevated valuations in parts of the mid cap space and ongoing sectoral rotation, a staggered or SIP-based approach is advisable. Investors should maintain a 5 year+ horizon to ride through market cycles and fully benefit from the fund's high-conviction, stock-picking strategy,' he added. The PE and PBV ratio of the small cap fund were recorded at 74.49 times and 12.50 times respectively whereas the dividend yield ratio was recorded at 0.25 times as on March 31, fund had the highest allocation in capital goods of around 33.64% compared to 20.78% by the category. The scheme is overweight on finance, retailing, electricals, consumer durables, realty, chemicals, and diamond & jewellery. The top 10 stocks of the fund constitute 41.28% of the total portfolio as on March 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.42 and an alpha of 0.39. The sortino ratio of the scheme was recorded at 0.49. The return due to net selectivity was recorded at 0.25 and return due to improper diversification was recorded at 0.14 in the last three years. The investment style of the fund is to invest in growth oriented stocks across all cap market capitalisation. Also Read | 11 equity MFs tumble over 20% from their 52-week NAVs. Do you currently hold any in your portfolio? Apart from Motilal Oswal Large & Midcap Fund, there are around 30 other funds of which 25 funds have a track record of three years in the market. Bandhan Core Equity Fund delivered the second highest return of around 24.06%, followed by Invesco India Large & Midcap Fund which gave 23.62% return in the same Birla Sun Life Equity Advantage Fund delivered the lowest return of around 12.27% in the last three expert considers the outlook for large & mid cap funds to be favourable as markets transition through earnings normalization and sectoral rotation and large caps are increasingly attractive on relative valuations, providing stability amid global uncertainties whereas the mid-caps, while selectively priced, continue to offer strong opportunities in segments with healthy earnings the mandated allocation to both market cap segments enable these funds to participate in cyclical recoveries while also riding structural growth trends and as market leadership rotates beyond a narrow set of stocks, actively managed large & mid cap strategies are well-positioned to generate alpha, Shinde believes.'While volatility may persist in the near term, investors with a medium- to long-term horizon stand to benefit from sustained compounding potential,' he to Sebi, the minimum investment in equity and equity related instruments of large cap companies should be at least 35% of total assets and the minimum investment in equity and equity related instruments of mid cap stocks should be at least 35% of total should always choose a scheme based on risk appetite, investment horizon, and goals. (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.
