Sebi has set the cat among the pigeons by asking mutual funds to ensure that they have necessary safeguards in place for their mid and small cap schemes. One of the measures that industry body AMFI has suggested is that funds should moderate inflows in these schemes. The good news is that many funds have already been doing that. The not-so good news is that when one scheme starts restricting inflows, investors go to other small cap schemes where there are no such curbs.
Valuations in Indian markets have become reasonable: Mirae's CIO Surana
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