Investors in 21 closed-end equity schemes will have their money freed up this month.
At present, most of the mutual fund schemes are benchmarked to the price return index (PRI).
Exiting a scheme in haste can result in reinvestment risks and transaction charges.
S&P BSE Midcap gaining 51 per cent and the S&P BSE SmallCap gaining 62 per cent.
Experts say it makes sense to invest in shorter maturity plans amid uncertainty over rates.
With concerns over rising oil prices, increasing fiscal deficit and lower GST collections, fund managers believe that bond yields are headed upward.
These bonds with a sovereign rating were a preferred choice for many senior citizens.
Investors in long-tenure gilt funds have suffered losses in the past three months.
HDFC MF is the most profitable asset management company, having posted a net profit of Rs 550 crore for the year ended March 31.
These funds have 20-40% allocation to equity with the balance in arbitrage & debt products.
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