New Delhi, Kotak Mutual Fund has resumed subscription of its small-cap funds from this Tuesday after a gap of four months.
MFs had restricted lump sum investments in their small-cap funds in March 2024 after a significant rise in small-cap stock prices. Moreover, the sharp rise in valuations due to unprecedented inflows has led many fund houses to limit inflows into such funds.
Kotak Mutual Fund said, "We are resuming subscription of units in Kotak Small Cap Fund from July 2. The political uncertainties around India's elections are behind us. This has reduced the volatility in the market, making the market small- “Cap has become more stable for stocks.” A note to investors.
It added, "We believe small-cap earnings growth is expected to improve, and companies are poised for strong earnings growth. Small businesses are expected to further benefit from the expanded economy, which will boost their valuations." will get support."
In its note, the fund house also advised investors to maintain realistic expectations.
“Although small caps have performed well in the past, it is important to set realistic expectations. The returns seen recently are unlikely to continue at the same pace and may become more modest. Therefore, based on recent performance But avoid the temptation to over-allocate. It is important to maintain your dharma of asset allocation," it said.
MFs had restricted lump sum investments in their small-cap funds in March 2024 after a significant rise in small-cap stock prices. Moreover, the sharp rise in valuations due to unprecedented inflows has led many fund houses to limit inflows into such funds.
Kotak Mutual Fund said, "We are resuming subscription of units in Kotak Small Cap Fund from July 2. The political uncertainties around India's elections are behind us. This has reduced the volatility in the market, making the market small- “Cap has become more stable for stocks.” A note to investors.
It added, "We believe small-cap earnings growth is expected to improve, and companies are poised for strong earnings growth. Small businesses are expected to further benefit from the expanded economy, which will boost their valuations." will get support."
In its note, the fund house also advised investors to maintain realistic expectations.
“Although small caps have performed well in the past, it is important to set realistic expectations. The returns seen recently are unlikely to continue at the same pace and may become more modest. Therefore, based on recent performance But avoid the temptation to over-allocate. It is important to maintain your dharma of asset allocation," it said.
