The Economic Times

Amid escalating geopolitical tensions, investors are flocking to safe-haven assets like gold and silver. Experts advise a higher allocation to gold ETFs for stability, as silver ETFs are more susceptible to industrial demand fluctuations. While both metals saw a recent surge, gold is considered the primary hedge against uncertainty.

IT sector funds have lagged over a 10-year horizon amid a 2026 downturn, underperforming metals, real estate and energy indices. While metals led returns, IT remained among lower performers despite intermittent strong years. The data highlights sectoral rotation and long-term divergence in returns across key NSE indices.

Eight smallcap funds had high performance consistency in the last five years, including Bandhan, Invesco India, Nippon India, HSBC as well as Tata smallcap funds.

Equity mutual funds saw a mixed performance in February, with many delivering positive returns up to 6%. LIC MF Value Fund led the pack, followed by several smallcap and midcap funds. However, a significant number of funds experienced negative returns, with some losing over 3%. Investors are advised to base decisions on personal risk appetite and goals.

ETMutualFunds' best mutual fund SIP portfolios are meant for three different individual risk profiles: conservative, moderate and aggressive. We have also considered three SIP baskets between Rs 2,000-5,000, between Rs 5,000-10,000 and above Rs 10,000 while creating these portfolios. Take a look at our recommended portfolios.

TRUST Mutual Fund has launched its new mid-cap fund, the TRUSTMF Mid Cap Fund. The fund employs GARV and LIM strategies to identify quality mid-cap companies. Experts suggest caution with NFOs, recommending existing funds with performance records. Mid-cap exposure is advised within portfolios, with a focus on SIPs for long-term wealth creation.

Silver and gold ETFs surged significantly on Monday as investors sought safe-haven assets amidst escalating geopolitical tensions following strikes on Iran. Angel One Silver ETF led gains with an 18% rise, while Tata Gold ETF climbed 9%. Experts advise a disciplined, long-term approach and staggered investments due to high volatility.

SEBI has revamped mutual fund categories. New rules simplify schemes for investors. Lifecycle funds offer goal-based investing. Existing solution-oriented funds will merge. Fund houses can now offer both value and contra funds with limits. Sectoral and thematic funds also face new overlap rules. These changes aim for greater transparency and easier comparison for all investors.

Sector funds often attract investors at market peaks due to their recent sharp returns, leading to entry timing problems and lower realized returns. While sector leadership shifts and concentration increases volatility, diversified funds offer stability. Sector funds can be tactical tools but not core holdings for long-term investors.

Nine largecap funds demonstrated high performance consistency over the last five years, with varying risk profiles and investment styles. Nippon India Large Cap Fund led with a 95% consistency score and a 20.23% CAGR, while ICICI Prudential Large Cap Fund also showed strong performance with 98% consistency and a 17.99% CAGR.

Multi-asset allocation funds gained popularity as investors embrace them for portfolio stability. AUM rose 72% to Rs 1.75 lakh crore, driven by strong performance in gold, silver, and automatic rebalancing benefits.

HDFC Mutual Fund launched HDFC Income Plus Arbitrage Omni FOF, an open-ended scheme investing in arbitrage and debt-oriented funds. The NFO, open until March 11, dynamically manages allocation based on market outlook. This tax-efficient fund aims to provide income potential with risk management.

Eight small-cap mutual funds delivered low consistency over the past five years, with performance scores ranging from 19% to 46%. Despite moderate risk, returns varied, with five-year CAGRs between 18% and 23%, highlighting uneven investor outcomes.

A 22-year-old investor sought advice on optimising her mutual fund portfolio for long-term wealth creation. Expert Harshvardhan Roongta of Roongta Securities recommended maintaining a balanced mix, limiting fund overlap, keeping 1015% in gold, and targeting 12% returns to potentially build Rs 4546 lakh in 10 years.

Bihar's new microfinance law could stall the sector's rebound. The state assembly passed a bill regulating money lending, a move that may push up loan defaults, echoing issues seen in other states. Lenders are prioritizing borrower engagement to curb repayment delays, and the industry aims to reassure borrowers while safeguarding asset quality.

IIFL Home Finance has secured a $300 million loan from the Asian Development Bank to expand affordable housing lending for low-income families, with a special emphasis on women. A portion of the funds will back green-certified, energy-efficient homes, helping address India's substantial housing shortage and extending homeownership to underserved communities nationwide.

Indian equities closed February on a weaker note as the Sensex and Nifty slipped, led by a sharp drop in IT shares amid concerns about AI-driven disruptions. Foreign institutional buyers returned, but domestic institutional purchases slowed. Geopolitical tensions and rich valuations kept risk sentiment under pressure, with analysts forecasting a continued uneasy tone in the near term.

TRUST Mutual Fund has launched the TRUSTMF Mid Cap Fund, an open-ended equity scheme targeting mid-cap companies. The NFO is open until March 13. The fund focuses on growth at reasonable valuations and aims to deliver long-term capital appreciation through disciplined stock selection and research-driven investment strategies.

Sebi has overhauled mutual fund categorisation and rationalisation norms, discontinuing solution-oriented funds and introducing life cycle funds. The regulator has tightened portfolio overlap rules, enhanced disclosure requirements, and set new investment and structural conditions across equity, debt and FoF categories to improve transparency and product differentiation.

SEBI has replaced solution-oriented funds with new life cycle funds, featuring a dynamic glide-path strategy across asset classes. Existing investors will see their funds merged into comparable schemes, with potential impacts on returns and taxation. Life cycle funds suit long-term, goal-based investors seeking automatic asset allocation.

Gold and silver ETFs saw gains on Friday. Tata Silver ETF jumped nearly 4%. Other silver ETFs rose 3%. Gold ETFs saw smaller increases. Investors are watching geopolitical tensions and economic risks. Experts suggest buying on dips for long-term gains. MCX gold futures and silver futures also showed increases.

According to the Sebi mandate, short duration funds can invest in debt instruments which have maturity between one and three years. That means these schemes are meant for short-term investments of up to three years or more. They are somewhat in the middle when it comes to interest rate risk. They are riskier than liquid, ultra short term, and low duration funds. However, they have a lower risk compared to medium duration and long-term funds.

Silver ETFs have seen a sharp decline while gold ETFs have delivered positive returns. Experts attribute silver's fall to volatility and profit booking, and gold's rise to its safe-haven status amid global uncertainty. Investors are advised to review their asset allocation for both precious metals. Long-term outlook for both remains positive due to geopolitical tensions and industrial demand for silver.

Mutual funds in India will now use domestic stock exchange spot prices for valuing physical gold and silver held by exchange-traded funds, a change effective April 1, 2026. This move by Sebi aims to align valuations with local market conditions and ensure consistent practices, replacing the current reliance on London Bullion Market Association prices.

The Securities and Exchange Board of India (Sebi) has revamped mutual fund scheme classifications, mandating uniform naming conventions and eliminating the solution-oriented category. New rules also cap portfolio overlaps for thematic equity funds, potentially leading to consolidation and impacting arbitrage fund returns. These changes aim for investor clarity and scheme uniformity.

Investor interest in multi-asset allocation funds (MAAFs) is surging, with assets under management climbing 72% to 1.75 lakh crore. These schemes offer dynamic asset shifting and volatility cushioning, making them a core holding for many. Driven by strong returns from gold and silver, MAAFs delivered 23% over the past year, outperforming the Nifty 50.

Sebi has revamped mutual fund norms, allowing equity and hybrid schemes to increase exposure to gold and silver while tightening classification rules. The overhaul limits portfolio overlaps, introduces life-cycle funds, discontinues solution-oriented schemes and aims to boost transparency in Indias expanding fund industry.

Radhika Gupta has endorsed Sebis newly introduced life cycle funds, calling them simple, effective and ideal for long-term financial planning. She said the products automatically adjust asset allocation based on investors time horizons, promoting discipline and reducing decision fatigue within a tax-efficient, goal-based investing framework.

Sebi has revised valuation norms for physical gold and silver held by mutual funds, mandating use of domestic polled spot prices from recognised exchanges instead of London benchmarks. The move aims to enhance transparency, reflect local market conditions and standardise industry practices.

Sebi has launched a new category of mutual funds called Life Cycle Funds. These funds are designed for goal-based investing with a fixed maturity and a glide path. Investors can choose from various maturity options, and asset allocation automatically adjusts over time. This move aims to simplify long-term financial planning for investors.

DSP Mutual Fund is placing temporary restrictions on new investments in its Multi Asset Allocation Fund starting February 27. This move is due to significant inflows making it difficult to manage the fund's asset allocation. Investors can still make transactions up to Rs 10 lakh per day. Existing SIPs and switch-ins will continue.

Canara Robeco Mutual Fund has launched its new open-ended equity scheme, the Canara Robeco Banking and Financial Services Fund. The fund, which opens for subscription on February 27, aims to capitalize on India's financialization and credit growth by investing in the banking and financial services sector.