Motilal Oswal Mid Cap Mutual Fund has gained popularity in the recent past due to its returns.

This can be attested by the surge in its AUM.

Unfortunately retail Indian investors are still swayed by recent returns, a criterion which should be allotted less weightage. 

Unlike most mid cap mutual fund schemes, Motilal Oswal midcap fund follows a cyclical and focused approach as opposed to a buy and hold approach.

There’s also a hint of momentum investing in the mix.

Parag Parikh Flexi Cap Fund has recently announced that it would be introducing the option of IDCW (Income Distribution cum Capital Withdrawal).

PPFAS was one of the few and rare fund houses to not offer the hitherto dividend plan option.

However, in light of the recent tax changes to debt funds, the fund house believes that the IDCW plan could be a more tax efficient plan for some investors.

Investors should however be prudent and pay heed to their tax advisors regarding this.

Parag Parikh Flexi Cap Fund now offers two options namely:

1. Growth & 
2. IDCW (Income Distribution cum Capital Withdrawal)

Within the IDCW (Income Distribution cum Capital Withdrawal) the fund house further offers two more options:

1. Payout of IDCW &
2. Re-Investment of IDCW

Whenever there is a fundamental change in the fund offering the fund house has to offer existing investors to option to exit from the scheme without paying any exit load for a particular time period which in this case is 31^st October 2025.

There is no fundamental change process or asset allocation plan of Parag Parikh Flexi Cap Fund.

There has been an increase in the variety of equity offerings in the mutual fund industry lately.

This has been advanced by several factors like :

·      Increase in Inflow

·      Growing market sentiment & Retail Exposure

·      SEBI’s re-categorization exercise

Increasing retail exposure has meant that investors are now more aware about mutual funds in general, this has led to higher expectations with regards to product offerings.

SEBI’s re-categorization exercise has also meant that AMC’s now cannot have more than one active fund in a category except for thematic funds.

All of the aforementioned points have resulted in mutual fund companies looking for newer products to penetrate the retail space even further while staying in compliance.

The recent influx of momentum funds in a short space of time is a result of that.

SBI Focused Equity Fund as the name suggests is a focused fund that can invest in not more than 30 stocks at any given time.

It was initially launched as a Small & Mid cap fund by the name of SBI Emerging Businesses Fund but was later renamed as SBI Focused Equity Fund and re-categorized as a focused fund due to SEBI’s re-categorization exercise in 2018.

Ever since its re-categorization the fund has seen a heavy tilt to large cap stocks which is a departure from its earlier investing stance.

Stepup Sip

Besides regular sip investments, there’s something called as Stepup Sip.

A Stepup Sip is an avenue via which your sip amount increases periodically either via a fixed percentage or amount.

Unlike a traditional SIP investment you will have to mention the fixed percentage or amount prior to starting a Stepup Sip and the entire process is automated.

A Stepup Sip gives you the facility to increase your sip amount at a pre-determined date and thereby not allowing procrastinating to set in.   

While a regular sip investment is a very convenient and affordable manner by which you can achieve your financial goals, adding to them periodically is the need of the hour.

Rising expenses, erosion of rupee, multiple life goals, etc. have all made an addition to your regular sip investment a nice and comfortable option to resort to.

It is always better to have it and not need it than to need it and not have it.

 What is a Flexi cap mutual fund?

A flexi cap mutual fund is a mutual fund that would by mandate need to invest a minimum of 65% into equity at all times.

The remaining 35% can either be invested in debt, international equity, cash or any of the above caps or all.

This 65% is only minimum which can even go up to 100% in case the fund manager so desires.

Whatever the allocation is between 65% to 100%, there is no restriction with relation to large cap, mid cap or small cap stocks.

Basically, the fund would be run as how erstwhile multicap mutual funds were being run.

Why must you invest in a falling market?

Imagine a smartphone you really like that you were considering buying, now imagine its price has fallen by 15-20%.

Nothing has changed except for the price, would you not buy just because the price has fallen?

Of course not!

The same is true for investing in a falling market, why would you not invest in a falling market when you have the opportunity to accumulate more units at a lower price?

This applies only if the fundamentals of your investments remain the same, it is only natural for your investments to also see a dip if the broader market is also going through a fall.

You should also be careful to not try to time the market and instead stagger your investments.