Stay Put in MFs

The stock market is on a roll again after falling steeply in March due to spread of coronavirus and the resulting lockdown. The benchmark Nifty has risen 43 per cent since March 24, when it had hit 7,511 (it closed at 10,768 on July 10). Equity mutual fund investors, whose portfolio had crashed 30-40 per cent, have a reason to rejoice.

Not just largecaps, even midcap and smallcap funds have risen up to 35 per cent since March 24, a signal that the recovery is broad-based. Most sectoral indices are also up significantly. Even the worst-performing theme – PSU – is up 27 per cent.

Is the worst behind us? Not necessarily. Coronavirus cases are still rising. While slowdown in the June quarter