Mutual funds: Motilal Oswal AMC to launch industry's first Nifty Microcap 250 Index Fund. Should you invest?
Small firms have historically offered higher returns than large, mid and small-caps, albeit with much higher risk
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Small firms have historically offered higher returns than large, mid and small-caps, albeit with much higher risk
Broader markets extended the rally, as Nifty Microcap 250 gained 0.48 per cent, Nifty Smallcap 50 rose 0.40 per cent, Nifty Smallcap 250 climbed 0.35 per cent, and Nifty Total Market rose 0.18 per cent.
At a time when investors are preferring higher-risk investment products like thematic and small-cap mutual fund (MF) schemes, some fund houses are exploring the possibility of going further down the market-capitalisation (m-cap) ladder to unearth newer investment opportunities. HDFC MF had filed papers with the capital markets regulator - the Securities and Exchange Board of India (Sebi) - earlier this year for an active micro-cap scheme. Some more fund houses are keen on launching such schemes, say industry observers.
Adani group stocks jumped in opening trade, as BSE raised the upper limit circuit of 4 of the group companies, namely Adani Transmission, Adani Green Energy, Adani Wilmar, and Adani Power.
Tech Mahindra, Infosys, TCS, Wipro, ONGC, HCLTech, Hindalco, Coal India, Bharti Airtel and ICICI Bank were the top losers in today's session.