MSCI’s May 2026 index rejig will reshuffle India constituents without changing the country’s overall count in the MSCI Standard Index, which stays at 165 stocks. MCX and Indian Bank are added, while Rail Vikas Nigam Limited and Kalyan Jewellers are removed, effective after market close on May 29. MSCI also plans a broader small-cap cleanup with more than a dozen exits.
In April, investors shifted away from large-cap mutual funds as inflows fell 16%. Mid- and small-cap funds, meanwhile, pulled in record money and posted stronger returns, even as market volatility persists. Retail preferences appear to be tilting toward higher-risk categories amid valuation concerns, raising the question of whether this rotation can last.
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Quant Small Cap Fund reshuffled its April 2026 portfolio, exiting positions including HDFC Bank, Jio Financial Services and Aarti Industries. It also added fresh bets such as Triveni Tribune, Sai Parenterals and PTC India, while trimming exposure to Adani Power and Aegis Logistics. The fund increased stakes in Black Box, Capacite Infraprojects and RBL Bank.
Quant Small Cap Fund reshuffled its portfolio in April, cutting ties with seven stocks including HDFC Bank and Jio Financial Services. The move also brought in new names and trimmed exposure in select counters. With market uncertainty and liquidity concerns in focus, the fund kept a defensive posture by increasing large-cap allocation to reduce volatility.
ETMutualFunds analysis of 246 equity schemes finds only seven funds delivering over 25% CAGR across three years. Bandhan Small Cap Fund leads at 30.24%, ahead of midcap winners like HSBC Midcap Fund at 26.55% and ICICI Prudential Midcap Fund at 25.92%, highlighting standout performance in small and midcap categories.
Several small-cap mutual funds that had temporarily restricted inflows due to stretched valuations and high liquidity are now reopening, but not uniformly. Some have lifted gates, while others—especially larger funds—remain closed, citing capacity limits and liquidity risks. Investors are urged to treat these moves as disciplined risk management, not signals to time the market.
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