Small-cap funds, which invest in the shares of small companies, have become the preferred choice for investors. In December, small-cap funds recorded the highest number of new accounts in the equity fund category. This trend reflects growing confidence in the potential of small-cap companies.
India’s asset managers are in discussions to launch a new mutual fund product with relaxed risk management norms but requiring a minimum investment amount, a mutual fund industry body said on Friday.
Liquid funds, commonly used by corporates to park short-term cash, have experienced significant outflows due to the Reserve Bank of India’s measures to tighten liquidity conditions and cyclical outflows at the end of the half-year. Data from the Association of Mutual Funds in India (AMFI) shows that liquid funds witnessed net outflows of ₹74,176 crore in September, the highest among debt oriented schemes. Bond yields have risen sharply since August as the RBI has drained excess liquidity from the banking system.
