Best arbitrage mutual funds to invest in May 2024
There is no change in the list this month as all schemes have retained their place in the list. Watch out for our monthly updates to ensure your schemes are faring well.
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There is no change in the list this month as all schemes have retained their place in the list. Watch out for our monthly updates to ensure your schemes are faring well.
According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks. Small companies go through many ups and downs - more than the established companies in the large and mid cap segments.
As per Sebi norms, mid cap schemes are mandated to invest in companies that are between 101 and 250 in the market capitalisation. These companies can be leaders of tomorrow. Thats what makes them great bets. If these companies live up to the promise, the market will reward the investors handsomely.
According to the Sebi mandate, large cap mutual funds are mandated to invest in top 100 companies by market capitalisation. Large companies fare better in a volatile market as these companies may be market leaders and resilient to downturns. That is why if you are looking for a relatively safer mutual fund category, you should consider investing in large cap funds.
Kotak Dynamic Bond Fund, one of the recommended schemes, has been in the third quartile in the last month. ICICI Prudential All Seasons Bond Fund has been in the second quartile in the last month.