Category: Analysis

The Parag Parikh Flexi Cap Fund, which is the biggest flexi cap fund in terms of money managed, has decided to invest more in Coal India and seven other companies this February. They bought 33.01 lakh (3.3 million) more shares of Coal India, increasing their total to 14.26 crore (142.6 million) shares compared to 13.93 crore (139.3 million) in January. They also added 79.21 lakh shares of PGCIL and 26.20 lakh shares of Zydus Lifesciences.

The fund also increased its investment in companies like Dr. Reddy’s Laboratories, ITC, Cipla, Mahindra & Mahindra, and EID Parry India this month. However, they sold some shares too, including 3.19 lakh shares of IPCA Laboratories, 84,417 shares of the Multi Commodity Exchange of India, and 10,442 shares of ICRA.

The fund kept its investments in 16 other companies the same, such as Axis Bank, HCL Technologies, and HDFC Bank. There were no new investments made in February, and they didn’t completely sell any stocks either. The fund has 27 different stocks in total.

Parag Parikh Flexi Cap Fund (PPFCF) can invest at least 65% of its money in Indian stocks and up to 35% in international stocks and bonds. The fund managers look for good companies to invest in based on their management quality, sector performance, and growth potential.

As of now, the fund has ₹88,004 crores in total assets. There’s a minimum investment requirement of ₹1,000 for anyone wanting to invest. The fund is focused on picking good companies rather than worrying too much about the overall economy. They currently hold about 22.73% in cash and other short-term investments which can be used for bigger long-term opportunities.

(Disclaimer: The opinions and suggestions in this article are those of experts and do not reflect the views of Thellv.news)

I was born in Mangalore into a family that ran a business, and I’ve traveled a lot during my life. I completed my Bachelor’s Degree in Commerce at Sydenham College in Mumbai and later earned a Post Graduate Diploma in Management from T.A. Pai Management Institute. This education helped kickstart my career in finance.

How I Got Here

My adventure in investing began when UTI Mutual Fund hired me straight from college. At that time, I didn’t know much about how the investment world worked, but I quickly learned to love it. Over the years, I moved up from being a research analyst to a fund manager, learning about many industries from cars to big infrastructure projects. Now, I work at Bandhan AMC, where I manage different investment strategies that aim to build long-term wealth for our investors.

Funds I Manage

I currently manage several funds:
– Bandhan Sterling Value Fund: AUM of Rs. 8,996 crores
– Bandhan ELSS Tax Saver Fund: AUM of Rs. 6,232 crores
– Bandhan Multicap Fund: AUM of Rs. 2,219 crores
– Bandhan Multi-Asset Allocation Fund: AUM of Rs. 1,760 crores
– Bandhan Transportation and Logistic Fund: AUM of Rs. 476 crores

(AUM data as of February 28, 2025)

My Investment Philosophy

I believe in looking for good deals when investing. I like to buy companies that may be struggling right now but have great potential for the future. My trick is to “buy at the right price” and wait patiently for them to improve. I don’t stick to just one type of business; instead, I try to understand what each company’s true value is and what stage they’re at in their growth.

What Excites Me About Managing Money

Managing other people’s money is both an honor and a big responsibility. I enjoy finding opportunities in the market that others might miss. Watching my investment ideas grow and helping others reach their financial dreams is what makes my job so fulfilling.

Starting now, Mirae Asset Mutual Fund has opened a new investment opportunity called the Mirae Asset BSE 200 Equal Weight ETF. You can subscribe to this fund until March 5, and after that, it will be available for buying and selling from March 11 onwards.

What is this fund all about? It’s designed to copy the BSE 200 Equal Weight Index, which includes 200 top companies in India. The goal of this fund is to help investors earn returns similar to this index, keeping in mind some small chances of errors along the way.

Why Choose an Equal Weight Strategy?

The cool thing about this investment is that it treats each company equally. This means every company in the index has the same chance to help you earn money. This strategy is popular around the world, especially for those who prefer a simple and passive way to invest.

You can start investing with a minimum of Rs 5,000, and after that, you can put in any amount in Re 1 increments.

Mirae Asset will also soon launch a related fund, called Mirae Asset BSE 200 Equal Weight ETF Fund of Fund, opening for subscriptions on February 25 and closing on March 11.

What Makes This Fund Special?

According to Siddharth Srivastava, who manages the fund, this equal-weighted strategy includes 100 large companies and 100 mid-sized companies. This helps you spread out your risk since you have many different companies in your portfolio.

Experts say this fund can be great for people who want a balanced investment across large and mid-sized companies. However, it’s important to know that it may not always be the best performer in every situation.

The fund will invest 95-100% in the companies in the BSE 200 Equal Weight Index and a small portion (0-5%) in safe money market instruments. This can help keep some money liquid for quick transactions.

Important Tips for Investors

Before deciding to invest, think about your existing investments. If you have overlapping stocks, this new fund might not add much variety to your portfolio. It’s best for those whose investments are not heavily focused on just one type of stock.

Overall, while the Mirae Asset BSE 200 Equal Weight ETF offers an exciting way to invest, always evaluate how it fits with your financial goals and comfort with risk.

Disclaimer: Information provided by experts may not reflect the views of the Economic Times or any other organization.

Are you worried about the ups and downs in the stock market? If you’re new to investing, you might feel confused about whether to put your money in big companies (large caps), medium-sized companies (mid caps), or something else. It can be tricky to know when to switch from one type to another. If any of this sounds familiar, flexi cap mutual funds might be a great solution for you!

What are Flexi Cap Mutual Funds?

Flexi cap mutual funds give fund managers the freedom to invest in any size company—big, medium, or small. This means that the manager can choose where to put your money based on what they think will perform well. Because of this flexibility, these funds are great for investors who want to grow their money over a long time—usually at least five to seven years.

Why Choose Flexi Cap Funds?

Since the manager can invest based on the current market situation, these types of funds can adapt quickly. They might invest more in big companies during steady times or switch to medium and small companies when the market is thriving. However, it’s important for you to pick a fund that matches your comfort with risk. Some flexi cap funds are safer than others, so choose wisely!

Our Top Picks for Flexi Cap Funds (February 2025)

1. Parag Parikh Flexi Cap Fund
2. UTI Flexi Cap Fund
3. PGIM India Flexi Cap Fund
4. Aditya Birla Sun Life Flexi Cap Fund
5. SBI Flexi Cap Fund
6. Canara Robeco Flexi Cap Fund

How We Chose the Best Funds

We looked at several factors to select these funds:

– Mean Rolling Returns: This tells us how much money the funds made over the last three years.
– Consistency: We checked how steady the funds were. A higher score means less ups and downs.
– Downside Risk: We analyzed how much the funds lost when things weren’t going well.
– Outperformance: We looked at how much better these funds performed compared to the expected market returns.

Final Note

Remember, just because a fund did well in the past doesn’t mean it will in the future. Always do your homework and consider your risk level before investing!

Many small-cap mutual fund investors are facing big losses. Since the Nifty index reached its highest point in September 2024, all 29 small-cap mutual fund schemes have delivered negative returns. Some investors have seen losses of up to 46% on their investments through Systematic Investment Plans (SIPs).

For example, Mahindra Manulife Small Cap Fund had the largest loss, with a drop of about 45.52%. If someone invested Rs 1,000 each month in this fund, their total value would now be just Rs 4,473. Other funds, like Aditya Birla SL Small Cap Fund and Tata Small Cap Fund, lost around 42% and 41%, respectively.

Even Nippon India Small Cap Fund, which is the biggest in terms of money managed, saw a loss of 38.88%. HSBC Small Cap Fund was not far behind, losing about 38.69%.

The Nifty50 index peaked at 26,277.35 in September 2024, but it has since dropped about 10%. During this time, experts warn that it can be risky to invest in small-cap stocks, especially when the market is showing signs of being expensive.

S Naren, a respected investment expert, explained the dangers of choosing the wrong mutual funds at bad times. He suggests that unless investors hold on to their SIPs for a long time—like 20 years—they may struggle to see returns. Instead, he recommends investing in large-cap or mixed-cap funds that have a better chance of performing well.

In the recent budget, the Indian government decided to help people spend more money, especially those earning between 12 to 50 lakh rupees a year. By changing tax rates, many households will have more money to spend—about 1 trillion rupees extra! This is great news for the consumption sector, meaning businesses that sell things like food and clothes might earn more. Experts are excited because they believe this boost will improve how much money these businesses can make (called “earnings visibility”). They recommend investing in these types of companies now since their prices are reasonable compared to the past five years.

The budget also plans to build more infrastructure, helping the economy grow overall. Some experts suggest that around 25% of people who file taxes could benefit from the new tax rules. For those interested in investing, a mixed strategy (including large, medium, and small companies) is a wise choice.

In the past year, funds that invest in consumption have returned around 13.36%. For instance, the Kotak Consumption Fund did even better, with a 21.35% return. However, it’s good to stay focused on long-term growth and not just recent spikes in the market.

Overall, the government’s moves in the budget are promising, but it’s important to keep an eye on how companies perform in the future before making investment decisions. Be sure to think about your own risk level and goals when investing!

Radhika Gupta, the CEO of Edelweiss Mutual Fund, recently spoke out against clickbait articles that call mutual funds scams and say retail investors are foolish. She confidently stated that Systematic Investment Plans (SIPs) can really make money for those who invest in them. Gupta mentioned that if you check the 10-year returns of an SIP in an equity fund, even during times when the stock market does not perform its best, SIPs allow fund managers to invest money slowly and steadily.

These days, monthly SIP investments have reached ₹26,000 crore, showing that millions of people trust this method. Gupta believes this trust is what keeps our capital markets stable, especially when foreign investors are pulling out money quickly. She explained that the mutual fund industry has created a tool not just for investing but also for regular saving, which is very important for Indian investors.

In her social media post, she said it’s impressive that so many common people are using SIPs and believing in them. She highlighted that this monthly trust worth ₹26,000 crore helps stabilize our markets.

Gupta also pointed out that SIPs have quickly cultivated a culture of retail investment in India, which is something many other countries struggle to achieve. She added that in the past, people viewed the stock market as just a risky gamble. Today, individuals want to save regularly and grow their SIP investments.

Radhika Gupta sees SIPs as a smart way for Indians to save and grow their money. She thinks this should be celebrated, not downplayed. She criticized the clickbait articles claiming mutual funds are scams, saying they don’t help the public.

In the last year, around 23 midcap mutual funds, which are investment options focused on mid-sized companies, have done better than their benchmarks, or market standards. Out of about 29 midcap funds, this means 79% of them outperformed their benchmarks. This is great news because it shows that most funds are making good returns for their investors!

For example, the Aditya Birla SL Midcap Fund earned a return of 18.14%, while its benchmark, the Nifty Midcap 150 – TRI, earned 17.16%. Similarly, both the Axis Midcap Fund and Bandhan Midcap Fund beat their market benchmarks.

Some of the top performers included:
– Franklin India Prima Fund: Gained 24.68%.
– HDFC Mid-Cap Opportunities Fund: Gained 20.52%.
– Kotak Emerging Equity Fund: Gained 26.61%.
– Motilal Oswal Midcap Fund: Gained an impressive 36.17%.
– Nippon India Growth Fund: Earned 21.41%.

Meanwhile, some funds did not perform well:
– Mirae Asset Midcap Fund: Only gained 13.87% while its benchmark was 17.16%.
– Tata Mid Cap Growth Fund: Earned 16.62%.
– Taurus Mid Cap Fund: Made just 6.78%.
– UTI Mid Cap Fund also didn’t beat its benchmark.

On average, mid-cap funds provided a return of about 21.11% over the past year, while their benchmarks, Nifty Midcap 150 – TRI and BSE 150 MidCap – TRI, earned 17.16% and 18.21%, respectively.

This analysis looks at all mid-cap funds and compares how well they did against their benchmarks. But remember, don’t rush into investing just based on these numbers! It’s important to think about your own risk level, goals, and how long you want to invest.

Disclaimer: The views of experts mentioned in this article are their own and not necessarily those of The Economic Times. If you have questions about mutual funds, you can reach out to us on social media or by email for answers!

The Motilal Oswal Midcap Fund has had a fantastic year in 2024, giving returns of about 57.51%. This strong performance has caught the attention of many investors. The big question now is whether the fund can keep doing well in 2025.

The fund started on February 24, 2014, and has received five-star ratings from places like ValueResearch and Morningstar. Over the past 10 years, it has grown by 17.99% each year on average, which is better than its benchmark of 17.45% and the average of similar funds at 15.32%. In the last five years, it earned 28.08%, outpacing its benchmark of 25.38% and the category average of 23.02%.

When looking at daily returns, this fund performed the best among midcap funds over the last 10 years, showing a remarkable 21.34% growth rate. In 2015 and 2024, it delivered the highest returns compared to other midcap funds. However, it has struggled in other years, like in 2018 when it lost 12.70% while other funds gained.

An expert explained that the fund’s success in 2024 is mainly due to its smart stock choices and finding growth opportunities, especially in sectors that performed well.

If someone had invested ₹10,000 every month in this fund over the last three years, it would now be worth ₹5.65 lakh. For five years, it would have totaled ₹13.56 lakh.

The fund currently has 90.80% of its investments in stocks and remains focused on high-quality midcap companies. It has about 84 stocks in its portfolio, with a significant chunk invested in the IT sector.

However, experts suggest investors be careful now, as market prices might be high after such strong growth. It might be wise for new investors to wait for a better time to enter the market. It’s essential to be patient and think long-term while investing in midcap stocks.

In December, the mutual fund market saw lots of new money coming in, especially from sectoral and thematic funds. These funds made a big splash with a total of Rs 15,331 crore in inflows, which is double what they received in November when the figure was Rs 7,657 crore. This jump is mainly because 12 new funds were launched in December, which together raised Rs 11,337 crore—that’s 83% of all the money from 33 new open-end funds that gathered a total of Rs 13,643 crore.

Some of the new funds launched include:
– Aditya Birla Sun Life Conglomerate Fund
– Axis Momentum Fund
– Bajaj Finserv Healthcare Fund
– Bank of India Consumption Fund
– DSP Business Cycle Fund
– ICICI Prudential Equity Minimum Variance Fund
– Kotak Transportation & Logistics Fund
– PGIM India Healthcare Fund
– Quantum Ethical Fund
– SBI Quant Fund
– Shriram Multi Sector Rotation Fund
– Union Active Momentum Fund

In the entire year of 2024, equity mutual funds received Rs 3.94 lakh crore, with sectoral and thematic funds leading the charge at Rs 1.55 lakh crore. Last December, inflows into equity mutual funds increased by 15%, reaching Rs 41,155 crore, and every sub-category in equity saw money coming in.

Mid-cap funds collected Rs 5,093 crore, while flexi-cap funds got Rs 4,730 crore. Small-cap funds also grew, with inflows rising from Rs 4,111 crore in November to Rs 4,667 crore in December. Other funds like dividend yield and ELSS saw smaller but positive inflows.

However, the total assets managed by mutual funds decreased by 2%, falling to Rs 66.66 lakh crore in December from Rs 67.81 lakh crore in November. In December, 34 new mutual funds were launched, gathering Rs 13,852 crore in total.

Experts believe that hybrid funds will become even more popular this year, as people learn the importance of balancing different investments. These funds, which mix stocks and debts (like bonds), could bring good returns, especially when the world faces uncertainty. It’s essential for investors to spread their money across various sectors like consumption, banking, and healthcare, rather than put too much into one area.

(Disclaimer: The opinions here are those of the experts and do not represent the views of Thellv.news)