Hey there, My Money Box Community! đź‘‹
SEBI, the market regulator in India, has turned their attention to Mutual Fund Money Managers, with recommendations to limit one-off investments from clients in small and mid-cap stock mutual funds and even to trim the commissions offered on their sale.
For context, let’s quickly touch base on recent market trends. The Nifty Small Cap 100 index has shot up by a whopping 74% over the past 52 weeks while the Nifty Mid-cap 100 index followed suit with a 61% increase – all by last Wednesday. Compare that with the Benchmark Nifty’s hike of 26% during the same period.
So what’s the result? Over the last 10 months, the assets managed by Mid and Small cap funds have swelled by 58% and 86% respectively.
Here’s the food for thought – do you think this move from the market regulator is justified in an attempt to manage the “market exuberance” in the small and mid-cap market? Or, do you stand by letting the free-market flow as it may, fostering the “buyer beware” mentality?
Would love to hear your thoughts on this?
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