New framework for protecting investors in mid- &small-cap funds
Sebi suggested that mutual funds set up a framework for protecting investors in mid and small cap funds, changes will come into effect from Mar 28
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New Delhi: More mid and small cap funds are likely to impose restrictions on lump sum investments into the mid and small cap schemes, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
A significant development is the communication from SEBI to AMFI suggesting that mutual funds set up a framework for protecting investors in mid and small cap funds. Sustained flows of retail money into these funds have made their valuations excessive and difficult to sustain, he said. This will benefit the large caps which are relatively fairly valued now. The correction in the broader market is likely to continue, he added. Deepak Jasani, Head of Retail Research, HDFC Securities, said NSE announced Shriram Finance will make its entrance to Nifty 50, replacing UPL from the index.
