Unitholders have started questioning the rationale of mutual funds investing in loss-making new-age companies at lofty valuations. While a mutual fund’s exposure to a single stock is mostly minuscule, some experts believe that fund managers may be running out of ideas amid a steady rise in SIP contributions.
Digital-first beauty and personal care company Honasa Consumer has become the latest new-age startup to list on Indian exchanges. The initial public offering (IPO) of the company, which operates under the brand Mamaearth, has attracted the attention of domestic mutual funds and foreign investors alike.
