Mutual funds rue missing out on market Rally

Mumbai: Mutual funds coming out with new fund offerings (NFOs) are ruing the missed opportunity to invest when the market corrected.
 

The Sensex, which closed at 59842, up 379 points on Tuesday, has gained 16.5 per cent from the June 17 low of 51360 in a sharp pull back. Foreign investors have also become buyers in the market, with net buying by Rs 1376.84 crore on Tuesday.

 Sundaram Mutual Fund, which has laun-ched its Flexi Cap Fund, on Tuesday, regrets being late in the  market, but nurses a hope that the current rally that started with the return of foreign investors will have a long run.

“The market was down in mid-July when we started the road shows and has rallied thereafter, but we hope the beast (bull) will be under control in next two weeks when fund deployment starts,” said Sunil Subramaniam, managing director, Sundaram Mutual.

The fund deployment cannot be delayed after the NFO ends on August 30, beyond one to two months, and we will deploy the money collected, said Ravi Gopalakrishnan, chief investment officer.

“We will invest in a judicious mix of 55-70 large, mid and small cap stocks with a top-down approach,” he said.