While price declines have been gradual rather than sharp, the consistency of the fall makes these stocks stand out in the midcap segment this week.
Small and midcap selloff: Analysts have been flagging expensive valuations in the broader markets for some time, adding that investors should stay cautious in the space.
The Nifty Smallcap 100 index gained 1.36% to extend gains for the sixth consecutive session, while the Nifty Midcap 100 index rose nearly 1% to record gains for the fourth straight session.
ICICI Pru CIO S Naren urged investors to protect gains made over the last five years, warning that mid- and small-cap stocks are highly overvalued. He recommended a diversified asset allocation strategy to manage risks.
MIT, the world’s second best university, has taken a contrarian view of Indian markets when compared to other foreign funds — buy emerging stocks and hold them long, data complied by Moneycontrol shows
Mid-cap stocks with quality businesses and healthy prospects have always found a place in the long-term portfolios of investment managers, irrespective of market movements. They withstand the corrections relatively well and deliver better returns in the long run.
Fund managers exited as these stocks either reached their target prices or turned unattractive due to weak prospects
The five graphs explain the trends in the mid-cap space how mutual fund managers allocated investments to and benefited from those potential multibaggers.
Persistent Systems, Cummins India and Lupin were the top three mid-cap stocks among the mutual fund portfolios in terms of the market value of the holdings. As of August, they were held by 205, 253 and 215 mutual fund schemes, respectively, data shows.
The Nifty Midcap 150 is fast becoming a preferred index for passive funds, as actively managed mid-cap funds, despite strong individual performances, have struggled to beat their benchmark indices. The Nifty Midcap 150 index has outperformed the Nifty Smallcap 250 and the Nifty 50 in most timeframes.
Domestic heavyweight sectors such as banking and FMCG witnessed buying, spurred by foreign investments and expectations of monetary easing by the RBI in October.
Quant-based mutual fund schemes eliminate human intervention and possible bias, as they leave stock-picking to algorithms while constructing their portfolio. These are a mix of pure-bred passive and active funds.
Atal Pension Yojana is a government run pension scheme that gives assured income to the people in the unorganised sector. It invests up to 15 percent in equities. Three pension fund managers, LIC, SBI and UTI, manage the entire corpus
These are the top 5 holdings of the top performing portfolio management service (PMS) strategies that delivered higher returns over the last year. The top 5 stocks are significant because a higher weight in them dictates fund performance, which in turn helps outperform peers
Prices of mid- and small-caps have risen, but they are not entirely driven by rise in earnings
Innovation themed mutual funds are the new flavour of the season
Mid-cap companies are fairly established firms with an improving business model. Mid-cap mutual fund schemes can offer balanced growth while carrying a modest level of risk compared to large-cap and small-cap funds
These smallcap stocks that had been moving sideways for over two years have now begun to rise noticeably over the past two months
Over the past six months, equity mutual funds attracted record net inflows of Rs 1.66 lakh crore. Fund managers deployed the money in the beaten down quality stocks
MNCs typically have a strong parentage, robust export stories, and high standards of corporate governance, distinguishing them as stronger entities within the broader market index
These quality midcap stocks were identified by PMS managed ahead of the election results that could hold up well regardless of the election outcomes
The outperformance of large-cap mutual fund schemes lies in, among other things, how efficiently fund managers manage the remaining 20 percent portion that they have to invest in small- and mid-cap stocks. These 10 mid-caps stocks tend to spice up the return of large-cap funds thus, in turn, likely to outperform the benchmarks.
Mid-cap stocks that are part of the portfolio of equity schemes have rewarded the investors. However, companies that lack business sustainability, are buried in debt, do not execute business strategies efficiently, and come with an unattractive valuation, rarely find a place in the portfolio of the actively managed mutual fund schemes.
Companies that have a high growth potential and return on equity command a higher Price-Earning ratio. That isn’t a bad thing, though. High PE might just indicate good future prospects
Children-oriented funds are open-ended schemes with a lock-in period of at least five years or till the time the child attains the age of maturity, whichever is earlier. The compulsory lock-in provides fund managers a leeway to buy quality mid-cap stocks and hold for the long term