Kotak Mutual Fund allows investors to invest in small-cap...
Kotak Mutual Fund allows investors to invest in small-cap...There is relief news for investors investing in small cap funds. Kotak Mutual Fund has once again started subscription in its small cap funds. Earlier, the asset management company had decided to ban lump sum investment from march 2024 after a sharp rise in small cap stocks.Kotak Mutual Fund said in a note to its investors, we are allowing lump sum purchase of units in Kotak Small Cap Fund from July 2, 2024. We have come out of the atmosphere of political instability in view of the elections in India. Due to this, the volatility in the market has reduced which is now proving to be better stable for small cap stocks.Kotak Mutual Fund said, we believe that the earnings growth of small cap stocks will improve. The earnings of the companies are going to be excellent. The way the indian economy is expanding will benefit small businesses, which will strengthen its valuation. In its note, the fund house advised investors to keep realistic expectations. Small caps have performed better in the past but it is important to keep realistic expectations. It is doubtful that the returns that have been seen in recent times will continue at the same pace and now the returns will become normal. The fund house has advised investors to avoid allocating more funds in view of the recent performance. And has asked to follow the religion of asset allocation.After the strong rise in small cap stocks and increasing investment in small cap mutual funds, many asset management companies had decided to stop taking lump sum money. Mutual fund companies were taking money in small caps only through SIP.