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Plan Your 2014-2015 Finances

The movement in mid cap and small cap will eventually boost mutual funds inflows.

The movement in midcap and small cap stocks in the last week will help mutual funds to end the financial year net asset value ( NAV ) . The BSE midcap index has risen by 3.5 % and small cap index by 3.2 % as against 1.5 % gain in the sensex .

Soon the retail investors will start putting money in equities directly .So also an FII fuelled rally in equities following improved macro numbers and especially following improved macro numbers and especially strongly pinning the hopes of a stable government which has attracted HNI investors and so the retail money is yet to flow in .

It has been a good start for equity mutual funds for the financial year 2k14 since 2k10. As sensex gave a return of 21 % in 2k13-2k14 ,BSE midcap index rose to 15.5 % and BSE small  cap index rose by 22 % . As BSE mid caps and small caps had shown negative trends of return in the past three years . AUM ( assets under management ) of mutual funds in India has crossed Rs nine crores for the first time this January .

And in Feb. the equity funds recorded inflows for the fourth consecutive month .For example Oriental Bank of Commerce had declined by 15 % since jan till 25b of march, but has risen 11 % in the last five trading sessions. However this time the rally of mid cap has been supported by various positive factors.

Performances of some mid cap funds have been better than BSE indices. As the is at the record high the fund houses will have to chalk out ways to attract retail investors as well as retain the existing set of them .