Investment flows in mid-cap funds declined

New delhi date. 16 June 2020, Tuesday

Mutual funds have been cautious in the same way that ordinary investors have been cautious about the market due to volatility in the stock market following the Corona epidemic. This led to a significant decline in net inflows into mid-cap funds last May.

According to data from the Association of Mutual Funds in India, net inflows into mid-cap funds stood at just Rs 5 crore in May, the lowest in 12 months. Is.

Mid-cap inflows accounted for 2.4 per cent of total inflows into equity mutual funds. The inflows into mid-cap funds have averaged 30.5 per cent over the past one year.

The under-management (AUM) of mid-cap funds stood at Rs 4.5 crore, while redemption pressure was also seen in mid-cap funds.

It may be mentioned here that net inflows into mid-cap funds were strong before March. Investors were confident that the mid-cap index had outperformed the benchmark index in the last 12 months.

Investors continued to invest in such funds due to the attractive valuations of many companies. As a result, the share of domestic funds in the Nifty Mid-Cap-20 rose to 11.5 per cent in March from 10.7 per cent a year ago. This trend has changed since the outbreak of the corona virus.

According to market insiders, the number of mid-cap companies is likely to decline sharply for the current financial year. So investors are currently moving away from mid-cap funds and focusing more on large-cap funds.

According to Amphi's data, mid-cap funds have lost 12.5 per cent in the last 12 months. Large-cap funds, on the other hand, have eroded by 12.5 per cent. At present, investors are also cautious in the fund sector.


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