Kotak Mutual Fund Reopens Small-Cap Funds Amid Stabilized Market

Kotak Mutual Fund has resumed subscriptions to its small-cap funds after a four-month hiatus. The fund house had paused these investments due to rising small-cap stock prices and market volatility. With political stability, Kotak Mutual Fund notes that the market is now more conducive for small-cap stock growth.

Kotak Mutual Fund has officially announced the resumption of subscriptions to its small-cap funds after a four-month hiatus. The pause, initially instituted in March 2024, had been due to skyrocketing small-cap stock prices and market volatility.

In a note to investors, the fund house indicated that the political uncertainties surrounding India's elections are now resolved, reducing market volatility and making the environment more favorable for small-cap stocks. 'We are resuming the subscription of units in Kotak Small Cap Fund, effective July 2,' the note read.

The fund house is optimistic about the future, citing anticipated earnings growth for small caps and a flourishing economy that will likely bolster smaller businesses. However, they also advised maintaining realistic expectations, noting that the exceptional returns recently observed may not continue at the same pace. 'It's crucial to maintain your dharma of asset allocation,' the note emphasized.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)