MF News
Smallcap mutual funds attract 44% of equity inflows despite stretched valuations. Should investors be cautious?
Investor confidence in small and mid-cap stocks is strong, with rising valuations when compared to large caps. Last month, small and mid-cap funds garnered Rs 16,873 crore, accounting for 44% of the total equity fund inflows. Despite a drop in equity fund assets, overall inflows have seen a 31% uptick, indicating healthy market dynamics.
Sundaram Mutual Fund announces launch of Equity Ex-Top 100 Long Short Fund through its SIF platform Select
Sundaram Mutual has launched its Select Equity Ex-Top 100 Long Short Fund, targeting mid- and small-cap stocks ranked 101st to 750th by market capitalisation. The NFO closes November 4, with limited short exposure through derivatives.
NFO Alert: Choice Mutual Fund launches large & midcap fund, its first actively managed equity fund
Choice Mutual Fund has launched its inaugural actively managed equity scheme, the Choice Large & Mid Cap Fund. This fund is designed to allocate at least 35% of investments in both large and mid-cap stocks, with up to 30% in small-cap equities. Investors can join the fund with a minimum investment of Rs 1,000 and SIPs starting at Rs 250.
1 Finance gets in-principle approval for India’s first MF Lite AMC licence
1 Finance has received SEBI’s in-principle approval to establish India’s first MF Lite asset management company, targeting a Q4 FY27 launch. The proposed AMC will offer passive investment products, including index funds and ETFs, subject to final regulatory registration.
Mutual fund holdings of IT stocks sink to record low in September
Indian mutual funds decreased their investment in Information Technology stocks amid worries about artificial intelligence disruption and reduced client spending. The sector's weight in equity assets dropped significantly, affecting major companies like Infosys and TCS. While some fund managers reduced holdings, others increased their investments in select stocks such as Infosys and TCS. The Nifty IT index experienced substantial losses but saw a rebound recently, improving investor sentiment.
Mutual funds bar fresh investments in Gold ETF FoFs. What are the rules for existing SIP investors?
Seventeen mutual fund houses have temporarily restricted fresh investments in specified gold exchange-traded fund-of-funds (FoFs), including lumpsum contributions, new SIPs and switch-ins. Existing SIPs and redemptions generally remain permitted, subject to scheme-specific conditions.
HDFC, Kotak, ICICI Prudential among 17 mutual fund houses to temporarily restrict subscriptions in gold ETF FoFs
Around 17 mutual fund houses have temporarily halted fresh subscriptions to gold ETF Fund of Funds from October 15–16, citing SEBI-related instructions or unspecified reasons. Redemptions and existing systematic investments continue, amid rising gold ETF inflows and seasonal festive demand ahead of Dussehra and Diwali.
Kotak Mutual Fund halts subscriptions in two Yes Bank AT-1 bond schemes after SC order
Kotak Mahindra Mutual Fund suspended subscriptions in two debt schemes holding Yes Bank AT1 bonds after the Supreme Court overturned their Rs 8,415 crore write-off. The fund house is reviewing the judgment to determine its next course of action.
Silver ETFs fall up to 5% as high oil prices weigh on sentiment. What should investors do?
Silver ETFs fell sharply on Thursday as elevated crude oil prices and uncertainty over US inflation data weighed on sentiment. Experts expect continued volatility amid interest rate concerns, dollar movements and geopolitical tensions. They advise long-term investors to consider accumulating gold and silver gradually while cautioning traders against short selling.
Investing in small and mid caps? DSP Mutual Fund recommends SIPs or experienced fund managers
DSP Mutual Fund recommends investing in small- and midcap stocks through SIPs or experienced fund managers who have navigated multiple market cycles. Its latest analysis finds large caps more attractive on valuations, while elevated relative valuations in small and mid caps warrant caution despite their strong outperformance over the past year.
Must Watch
AlphaGrep Mutual Fund announces launch of hybrid long short fund through its SIF platform Eminence
AlphaGrep Mutual Fund launched Eminence SIF, introducing its Eminence Hybrid Long-Short Fund, with subscriptions opening October 14–28. The strategy combines equity long-short, special situations, options, arbitrage and fixed income. Targeting sophisticated investors, it requires a minimum investment of Rs 10 lakh, or Rs 1 lakh for accredited investors, with a 12-month-plus horizon.
Investors shrug off bear party, put big money into equity mutual funds
Equity mutual fund inflows reached a five-month high in September with ₹38,306.55 crore invested. Small-cap and mid-cap funds attracted significant interest from investors despite market instability. Debt funds faced substantial outflows of ₹1.83 lakh crore primarily from liquid and money market schemes. The industry's total assets under management decreased by 5.1% as of September 30. Gold ETFs saw inflows surge to ₹4,451 crore amid increased investor interest in safe-haven assets.
NFO Alert: Invesco Mutual Fund’s SummitSIF launches active asset allocator long-short fund
Invesco Mutual Fund’s Summit SIF has launched the Summit Active Asset Allocator Long-Short Fund, an interval investment strategy offering exposure to multiple arbitrage opportunities across equities, debt, indices, commodities and special situations. The new fund offer is open for subscription until October 26, with a minimum investment of Rs 10 lakh for investors.
AMFI Data: MF SIP inflows hit record high of Rs 32,490 crore in September
Mutual fund SIP inflows touched a record Rs 32,490 crore in September, rising 11% year-on-year. Equity mutual fund inflows surged 31% month-on-month to Rs 38,306 crore, led by smallcap funds, which attracted a record Rs 9,038 crore for the third consecutive month as the top category. Meanwhile, ELSS funds recorded net outflows for the 14th straight month.
Equity mutual fund inflows jump 31% MoM to Rs 38,306 crore in September; smallcap funds log record collection
In September, equity mutual fund inflows surged by 31% month-on-month, totaling Rs 38,306 crore. Smallcap mutual funds notably drew in record inflows of Rs 9,038 crore for the third month straight. Conversely, debt funds experienced a considerable outflow of Rs 1.83 lakh crore. Mid cap and flexi cap funds also enjoyed significant inflows, while ELSS funds continued their streak of net outflows for the 14th consecutive month.
Mutual funds close in on FPIs in Indian equity ownership
With Indian mutual funds now holding 11.7% of domestic equities, they have overtaken foreign portfolio investors, whose share has plunged below 14% since May 2021. This emerging trend showcases the increasing influence of local investors, particularly in Nifty 500 companies. Moving forward, any revival in foreign investment will likely depend on corporate earnings bouncing back and navigating competitiveness in the broader Asian landscape.
