The Economic Times

PPFAS Mutual Fund introduced the Rs 250 choti SIP facility across five schemes to encourage first-time investors and improve financial inclusion. The initiative allows eligible investors to start monthly SIPs with low-ticket investments under specific conditions prescribed by SEBI and AMFI.

Financial experts advise first-time SIP investors to focus on diversified equity mutual funds for long-term goals, avoid panic during volatility, limit exposure to sectoral funds, and rely on professional fund managers for balanced asset allocation and disciplined wealth creation over time.

Compounding and discounting are key personal finance concepts that help investors understand wealth creation and the present value of future money. The article explains the Rules of 72, 114, 144 and 70, highlighting how investments grow over time, how inflation erodes purchasing power, and why time value plays a critical role in financial planning.

India-focused offshore funds and ETFs underperformed the MSCI India USD Index over the past year, with mid and smallcap exposure dragging returns lower. Several funds posted losses exceeding 20% amid market volatility.

Top-performing smallcap funds delivering strong returns amid sustained market momentum.

DSP Mutual Fund has urged investors to allocate towards rupee-denominated assets despite concerns over crude oil prices, currency weakness and foreign outflows. The fund house cited undervalued REER levels, narrowing India-US inflation differentials, resilient external sector buffers, attractive largecap valuations and cyclical forex trends as key reasons favouring Indian equities and bonds.

Franklin Templeton Mutual Fund has suspended fresh investments in Franklin India Retirement Fund from May 20, following Sebis move to discontinue solution-oriented mutual fund schemes. The temporary halt covers lump sum investments, SIPs, STPs and switches, while the industry transitions towards new life cycle fund structures with dynamic asset allocation strategies.

Amid global uncertainty, Sundaram Mutual Fund's Anand Radhakrishnan advises investors to stay disciplined. First-time investors should begin with balanced funds and short-duration debt. Gradually increase equity exposure and rebalance portfolios periodically. Avoid emotional decisions and maintain diversification across asset classes and geographies. Crude oil prices are a key variable to watch over the next six to twelve months.

Investors can consider corporate bond funds for near-term and three-year goals. These funds invest in high-rated company papers, offering relative safety. Safety and interest rates are key factors. HDFC Corporate Bond Fund, Aditya Birla Sun Life Corporate Bond Fund, ICICI Prudential Corporate Bond Fund, and Sundaram Corporate Bond Fund are recommended for May 2026. Continue existing investments in these schemes.

Multi-asset allocation funds, once seen as a guaranteed win, showed a wide performance range last year, from 3.3% to 24.6%. Investors flocked to these funds as volatile markets made asset allocation challenging, with top performers favoring gold and silver. Future success will depend on fund managers' tactical asset allocation and selective equity positioning.

India-focused offshore funds and ETFs underperformed the MSCI India USD Index over one year, though Aryabhata India Fund emerged as the top performer with the smallest decline among peers.

Indian mutual fund assets under management have surged. Equity funds saw a significant rise in assets and investor numbers. Flexicap funds led net sales, attracting substantial inflows. SIP flows doubled in under three years, reaching new highs. The industry's AUM grew substantially over the past decade, indicating strong investor confidence and growing participation in mutual funds.

The ET Alpha Summit gathers top market minds to decode global risks, AI disruption, and investment opportunities, offering investors a clear roadmap for smarter, future-ready wealth decisions.

Mutual fund investors are exploring international and thematic schemes, with some delivering up to 200% returns. Technology and semiconductor funds, especially those with Taiwan exposure, have seen significant gains. Experts suggest starting global diversification with broader US funds. While past performance is strong, future returns may vary.

Large cap funds have lagged mid and small caps across various time horizons, showing muted or negative returns in shorter periods. Experts suggest increasing allocation to large caps for stability and better risk-reward due to attractive valuations, especially for first-time investors and through SIPs.

Your employer might soon invest in mutual funds directly from your salary. Sebi is considering a new proposal to allow this. Employees can choose their funds, and employers will deduct the amount from salaries. This aims to simplify investing and increase participation. Redemption proceeds will still go to the employee's account.

Banking & PSU debt funds offer a relatively safe investment option for a few years, investing primarily in government-backed entities. These schemes gained popularity after past debt market turmoil. While risks like private bank exposure and interest rate changes exist, they are considered minimal for short-term investors.

Sebi is proposing new rules for mutual fund investments. Third parties can now make payments in certain situations. Employers can invest on behalf of employees through salary deductions. Asset Management Companies can pay distributors in mutual fund units instead of cash. A framework for investors to donate to social causes is also suggested.

Investing in equity through Systematic Investment Plans (SIPs) offers greater predictability and reduced risk over extended periods. A study reveals that longer tenures, ideally 10 years or more, allow investors to navigate market cycles and benefit from rupee cost averaging.

The current regulatory framework mandates that all payments for investments in mutual funds must originate directly from the investor's own bank account and be routed exclusively through RBI-authorised payment aggregators or Sebi-recognised clearing corporations.

Sebis new mutual fund overlap rules aim to improve diversification by limiting duplicate stock holdings across schemes, encouraging investors and fund houses to reduce redundancy and maintain more efficient portfolios.

Baroda BNP Paribas Mutual Fund has removed the Rs 5 lakh daily cap on lump sum investments and resumed fresh SIP/STP registrations in its Baroda BNP Paribas Aqua Fund of Fund from May 20. The move comes as overseas investment headroom improves, though subscriptions will remain subject to regulatory overseas investment limits.

Tata AIA Life Insurance has launched the Tata AIA Dividend Leaders Index Pension Fund to help investors build long-term retirement wealth through Indias leading dividend-paying companies. The NFO is open until May 27, with units priced at Rs 10. The passively managed fund tracks the BSE 500 Dividend Leaders 50 Index and invests in 50 consistent dividend-paying firms, combining market-linked growth with life insurance protection for disciplined retirement planning.

Twelve equity mutual funds delivered over 10% returns in the past year, led by TRUSTMF Small Cap Fund with 19.24%. Midcap schemes from ICICI Prudential, HSBC and Mirae Asset also featured among the top performers. Overall, 284 schemes were analysed, with returns ranging from 11.51% to 9.86%.

The Wealth Company Mutual Fund, backed by Pantomath Group, has launched its 10th fund, The Wealth Company Large & Mid Cap Fund. This open-ended equity scheme, open from May 21 to June 4, aims for long-term capital appreciation by investing in both established large-cap companies and growth-oriented mid-caps, employing a unique research framework.

Top-performing mutual funds delivered strong five-year SIP returns, led by gold, infrastructure, manufacturing, healthcare, and smallcap categories, though investors should prioritize risk appetite, goals, and investment horizon over past performance alone.

A 53-year-old investor aims for a Rs 5 crore retirement corpus in seven years without a pension. Experts suggest increasing monthly SIPs to Rs 1.2 lakh with annual 24% step-ups and shifting to an 80:20 equity-debt allocation. A bucket-based SWP strategy is recommended for post-retirement income, potentially generating Rs 1.67-2.5 lakh monthly.

Fund managers hold cash in equity schemes for various reasons, including market overvaluation, difficulty finding quality stocks, and to meet daily redemption requests. While cash offers a downside buffer, high levels can lead to underperformance if markets rally, potentially causing investor outflows.

Homemakers earning under Rs 2 lakh from fixed deposits and mutual funds may not need to file ITR legally, but voluntary nil return filing helps maintain records and claim TDS refunds.

Women are significantly boosting India's mutual fund landscape, managing Rs 11.3 lakh crore in assets and contributing Rs 3 lakh crore in new investments during FY26. Their participation grew 13%, outpacing men's 11% growth. This surge highlights a shift towards disciplined, goal-oriented investing, with a rising number of women embracing diversified and long-term wealth creation strategies.

Building a mutual fund portfolio needs careful planning. Experts highlight that too many funds lead to overlap and high risk, especially in smallcap and midcap categories. Investors are advised to consolidate holdings, increase largecap exposure, and reduce thematic investments. A balanced approach with fewer, well-chosen funds ensures better management and stability.

HSBC Midcap Fund delivered exceptional returns, transforming a Rs 10,000 monthly investment into Rs 2.33 crore over two decades. The fund also showed strong three-year trailing returns, ranking second in its category. Experts highlight the fund manager's strategy of focused stock selection in quality mid-sized companies across growth sectors. This approach has consistently benefited from India's economic expansion.

ICICI Prudential Asset Management Company has launched two new strategies under its Specialised Investment Funds (SIF) segment: iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund. The NFOs are open for subscription till June 2. The strategies aim to offer adaptive portfolio construction through long-short positioning, dynamic asset allocation and derivatives-based risk management.

Edelweiss Mutual Fund held major allocations in banking, telecom and financial stocks during April 2026, with portfolio adjustments in MCX, L&T and BSE reflecting active investment and rebalancing strategies.

Seven mutual funds reduced stakes in 19 smallcap stocks during April, trimming exposure across sectors to actively manage portfolios, rebalance holdings, and improve returns amid changing market conditions and valuations.

India-focused offshore funds saw mixed trends as Franklin FTSE India ETFs attracted strong inflows, while the top 10 funds combined assets declined 22% in March 2026 amid broader market weakness.

Market expert Nisreen Mamaji advised a balanced, structured approach to a Rs 6 lakh mutual fund investment, suggesting 80% allocation to equities and 20% to gold and silver, deployed via staggered investing. She projected potential long-term returns of 1214% for equity, 78% for gold and 911% for silver, highlighting disciplined investing, diversification and avoiding overcomplex portfolios for wealth creation.

Edelweiss Mutual Fund has launched its second Altiva SIF offering, the Altiva Equity Ex-Top 100 Long-Short Fund. This equity-led strategy aims for long-term capital appreciation by focusing on small and midcap companies, offering a differentiated investment opportunity beyond the top 100 by market capitalization.

Retiring soon and aiming for a Rs 1 lakh monthly income from your PF and gratuity corpus? Experts advise against investing the entire corpus in income products due to inflation and longevity risks. A prudent bucket strategy is recommended for sustainable income and portfolio growth.

Mutual funds have significantly reduced their technology sector exposure to an eight-year low, driven by concerns over AI disruption, slowing global IT spending, and muted earnings. This strategic shift reflects investor caution amid a transition phase for the IT sector, with a preference for domestic sectors like financials and defence.

Liquid funds saw a record inflow of over 46,000 crore in April, the highest in seven years. This surge was driven by ample money in the banking system and attractive short-term returns. Investors also chose these low-risk options due to equity market volatility. Liquid funds offer quick access to money, making them ideal for parking surplus funds.

iSIF Equity Long-Short Fund and iSIF Active Asset Allocator Long-Short Fund will open for subscription on May 19 and close on June 2. The minimum investment amount for both funds is Rs 10 lakh.