Chote miyan out, bade miyan in! How MF investors are shuffling their cards
mutual funds are now beginning to show early signs of a possible reversal in March when an outflow of Rs 94.17 crore was seen for the first time in 31 months. Largecap funds, on the other hand, are back in vogue as investors poured in Rs 2,127 crore last month after pulling out Rs 2,741 crore in the last 11 months.
The total assets under management (AUM) of largecap funds has now surged to Rs 3.14 lakh crore, the second highest in equity category after flexicap funds.
Does the on-going volatility in the mid and small cap funds and the outflows from small cap funds in March indicate that large cap funds will gain more popularity from the investors?
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“The valuations in large caps, though also at a premium to long term averages, look more reasonable as compared to mid and small caps, and are therefore a relatively better place to invest in, than mid and small caps,” Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai.
Analysts believe that the froth in the small and mid cap segment will shift the trend. It will make investors shift toward the large cap funds.
“The trend reversal in terms of flows into the smallcap category was witnessed after more than two years of continuous positive flows into the segment. The SIPs have however continued on a strong trend though. The nervousness in the market also seems to be abating. Given all this, it would be too early to suggest it could be a
