The sharp fall in equity markets, fearing a rate increase by the US Federal Reserve, is bringing back investor interest in dynamic equity funds.
Wealth managers are pushing these funds, after the Nifty moved up 30% since February. The price-to-earnings ratio of Nifty is 23.89, a 19% premium to its 10-year historical average of 20.09, which makes many wealth managers advocate caution.
At such a time, they believe investors would do well to invest in dynamic funds. These ..