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Good chance for smart investors; opt for multicap funds now: Dhirendra Kumar

August SIP flow was 47 per cent higher than that in the year-ago period.

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Updated: Oct 08, 2018, 12.44 PM IST
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The CEO at mutual fund research firm Value Research said the resilience that the market witnessed earlier this year was largely on account of SIP flows.
NEW DELHI: Mutual fund veteran Dhirendra Kumar says he does not expect any reversal in SIP flows because of weak market conditions.

August saw a record Rs 7,658 crore flows into mutual fund SIPs. Data for September, which saw the BSE benchmark tank 2,418 points, or 6.25 per cent, is yet to be released.

“I do not see any turnaround. MF investors won’t discontinue, I don’t see that,” he said in an interview to ET Now.

The CEO at mutual fund research firm Value Research said the resilience that the market witnessed earlier this year was largely on account of SIP flows.

August SIP flow was 47 per cent higher than that in the year-ago period. Mutual funds saw some Rs 36,760 crore inflows through SIPs between April and August, data available with the Association of Mutual Funds in India (Amfi) showed.

As market sentiment turns weak, “the other side of the market, the opportunistic investor, who have stayed away from the market all this while, may find attractive opportunities,” he said.

Kumar says experienced investors should not get unnerved by the ongoing volatility. He advised investors to go for one or two multicap funds. Conservative investors, on the other hand, should look to add equity income funds, he said.

For those, who are inexperienced or are yet to get their hands on mutual fund investing, should consider balanced funds, which invest two-third of the corpus in equity and one-third debt.


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