Friday, February 23, 2007

Rising Corpus - Good or Bad ?

There is a article in ValueReserachOnline on whether Rising Corpus is alarming or not - Read the artcle.

I had this in my mind for some time... Always MF experts refer others for some 4-5 funds... and their fund is rising.. Huge money to manage, may become disadvantage sometimes...

They say for funds who have majority allocations in high-cap funds will not face problems. But for mid-cap concentrated funds, when market goes down, there may be not much buyers for mid-cap funds which can be trouble some..

For some of the high performing mid-cap funds like Reliance Growth and Sundaram Select idcap Fund - the corpus is rising very much. Let us watch how those funds perform in difficult times..

I had only one funds which was mid-cap oriented - Pru ICICI Tax Plan - My value for those dipped by 20% in last week.. Mid-cap funds earn you more.., but they are more riskier!

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