Why are midcap fund inflows falling?

Midcap fund inflows fell by 25% year-on-year in October due to a broader market moderation in investor sentiment and valuations.

What is the current trend for smallcap funds?

Smallcap fund inflows dropped 20% to ₹3,476 crore in October, reflecting a general slowdown in equity fund investments.

What should long-term investors do now?

Experts recommend that long-term investors remain patient and stay invested through the current market phase despite subdued returns.

Home / Business and Economy / Midcap & Smallcap Funds See Slowdown

Midcap & Smallcap Funds See Slowdown

21 Nov

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Summary

Midcap fund inflows decreased by 25% year-on-year in October.
Smallcap fund inflows experienced a 20% drop in the same period.
Experts advise long-term investors to remain patient during this phase.

Investor interest in midcap and smallcap funds has moderated significantly, with October witnessing a 25% year-on-year decline in midcap fund inflows and a 20% fall for smallcap funds. These figures follow two robust years for these segments, though returns have become less impressive this year.

Overall equity fund inflows also saw a decline in October. Open-ended equity funds experienced a 19% month-on-month decrease in net inflows. Largecap funds reported a substantial 58% drop, while multicap funds saw a 30% reduction, indicating a broader market-wide trend of moderating investment flows.

Despite the current slowdown, financial experts are advising long-term investors to exercise patience and remain committed to their investments. The current phase is seen as a temporary adjustment, and staying invested is recommended to navigate through potential market fluctuations and capitalize on future growth.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.