The stock market has gained a lot since March low. Amid this boom, investors are also investing heavily in the market. In such a situation, the attractiveness of investors has increased in equity funds which have come down to their lowest levels in March and April. In the last 3 months, every cut of the equity segment has yielded double-digit returns. Although cases of coronavirus are increasing continuously in the country and the world, India China tension is increasing. Therefore, there is also uncertainty in the market. The question arises as to where to invest money in such an environment. In large-cap fund, midcap fund, multi-cap or smallcap fund.
Return of equity funds in 3 months
|Large-cap Fund||11.91 %|
|Midcap fund||18.83 %|
|Multicap fund||13.27 %|
|Smallcap Fund||25.85 %|
|Lodges & Midcap Funds||14.54 %|
|Large-cap Fund||4.82 %|
|Midcap fund||14.29 %|
|Multicap fund||7.14 %|
|Smallcap Fund||16.73 %|
|Lodges & Midcap Funds||7.93 %|
Uncertainty in the market, the balance should be invested
Gaurav Mishra, senior fund manager-equity, Mirae Asset Investment Managers India, says that it is difficult to differentiate between large-cap and midcap after the current rally in the current stock market. Market growth is important, but there is still a situation of uncertainty in front of investors. Whether there is a growing case of Covid-19 or live political tension, there is a fear in the market. In such a situation, it is better to invest with companies that have strong Bijssen model, whether they are large-cap or midcap.
Right now, the best segment for investment is multi-cap. Multicap has the flexibility that it can move the portfolio to companies with a different market cap according to the opportunities in the market in terms of volatility.
Invest money by looking at risk and investment
AK Nigam, director of BPN Fincap Consultants Private Limited, says that if there is a further environment, there may be tension on the market. Till winter comes, there is a fear of increasing tension between India and China. Any negative news on the border can ruin the market sentiment badly. On the other hand, there will remain uncertainty till the coronavirus vaccine comes in the market. The market has strengthened 45 percent of its March low. In such a situation, there is a possibility of a fall. In such a situation, large-cap and multi-cap still look more secure. It is better than investors invest their money by looking at their risk-taking ability and target of investment.
They say that if there is a target for 10 years or more, then you can move to midcap or smallcap fund. If midterm is aimed then large and midcap or multi-cap are a better option. At the same time, LORGECAP is still the best option for the short term. Because when there is a sudden drop in the market, the effect in the large-cap is less than in the midcap or smallcap.
#Largecap #Midcap #Multicap #Mutual #Corona #Affected #Markets