Small and midcap stocks have seen significant volatility in the last few months, while retail investors have not rushed to release their holding. Shah noted, “Truth, the loose level pain has not yet come, the retail has not redeemed at all. Therefore, it is very difficult to say whether the pain will come back.”
However, he warned that the market improves, some investors can book a profit, which gradually releases small and MIDKP funds.
Where does the new money flow?
With investors to stabilize at high -risk stagnation, small and midcap stocks have been clearly shifted. Shah highlighted that additional investments are now favoring balanced benefit funds and multi-asset allocation schemes in the small and MIDK category.
“The allocation will be on the non-small and non-midcap category,” he said … extra money will not go into small and midcap.
It is noteworthy that Largicap plans have also begun to see flow in the last three to four months, reflecting a more cautious approach among investors. Shah pointed, “In the last months-months months, money has started to come into big-cap stocks.”
ELSS gains a velocity for tax planning
Like the ends of the end of the financial year, a significant portion of the new money is moving in equity-linked savings schemes (ELS) for tax saving purposes.
According to Shah, “many money will go to the ELSS category for tax planning perspective.” However, within ELSS, significant 30-35% allocation still goes into smaller and MIDCAP stocks, which makes it a unique investment Avenue Balancing Tax benefit with exposure to high growth parts.
What about the new fund’s Offers Fars (NFO)?
The NFOS had previously seen a strong partnership of investors, but in the last two to three months, the new launch has slowed down. Shah commented, “I think of NFO Nahi Hai right now. I think the NFO has been dried for the last two to three months.” This suggests that investors are now focusing on existing varied funds rather than chasing new subjects.
Also Read: Booster Shot T: HAL, HAL, 6 stocks to buy Bell from the European Commission’s Rearm Plan.
Market Outlook and SIP trends
While systematic investment plans (SIPs) are a popular mode of investment, SIP closed in February, indicating the spirit of cautious investors. “HIST, if I have 10 sips, about 4 will be closed. In February, the number has risen to 6.5 or 7,” Shah declared. This suggests that some investors pause contributions between market fluctuations, though overall sucking flow remains strong.
Looking forward, Shah expects to stable the pace of investment in the coming months, the sucking flow in the range of Rs 25,000-26,000 crore will stabilize.
(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)
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