Home / Business and Economy / Midcap & Smallcap Funds See Slowdown
Midcap & Smallcap Funds See Slowdown
21 Nov
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.
