Mid and smallcap mutual funds record Rs 30,350 crore inflow in 6 months. An overcrowded trade?
mutual funds attracted around Rs 30,350 crore inflows during April to September of the current financial year. The continuous inflows in these categories were mainly due to high returns offered by these categories.
According to the Association of Mutual Funds in India (AMFI), mid and small cap funds received inflows of Rs 32,924 crore during the same time a year ago.
“Investments in mid and small cap funds should be made based on one’s risk appetite. It is important for investors to note that mid and small cap segments are highly volatile. While they can give exceptionally high returns in up markets, they can fall equally hard in down markets. Therefore, investors should take exposure in these funds in line with their risk appetite and invest only with a long-term investment horizon,” said Melvyn Santarita, Analyst – Manager Research, Morningstar Investment Research India
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«I expect the inflows to continue as Indians want to invest in the high-growth sectors. Small cap funds should be seen as an integral part of one's portfolio allocation and not a tactical play,» CEO of Trust Mutual Fund Sandeep Bagla told PTI.
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