As FY27 approaches, experts recommend flexicap and multi-cap funds for equity investments, alongside gold ETFs for hedging and silver ETFs for tactical allocation. They advise a multi-asset approach, emphasizing large-cap funds for core portfolios and cautioning against over-concentration in mid- and small-cap segments due to current market conditions.

Mutual funds boosted their cash reserves by Rs 3,544 crore in February 2026, reaching a total of Rs 2.09 lakh crore. This marks a slight increase in cash as a percentage of total assets under management. Several large fund houses, including SBI Mutual Fund and PPFAS Mutual Fund, hold significant cash positions.

Indian stock markets, including BSE Sensex and Nifty, have seen significant declines. Experts advise investors to maintain discipline by continuing Systematic Investment Plans (SIPs). They suggest focusing on established equity funds and diversifying with large-cap, flexi-cap, and multi-asset allocation funds. Gold and silver funds can also offer diversification. Investors should avoid short-term market predictions and focus on long-term goals.

Mutual funds significantly increased their allocation to the healthcare sector in February 2026, making it their fourth-largest exposure. This overweight stance, exceeding the BSE 200 benchmark, is driven by strong earnings visibility, export potential in pharmaceuticals, and rising insurance penetration. Experts suggest moderate exposure for investors, balancing stability with sectoral concentration risks.

A Vallum Capital report shows that domestic and global investors followed sharply different strategies during the recent silver rally. While global institutional investors largely sold during the surge and bought during corrections, Indian retail investors increased buying near the peak and exited during declines, highlighting behavioural differences and timing gaps in ETF investing.

Mutual funds reduced exposure to IT stocks in February, with the sector’s weight in portfolios falling to an eight-year low of 6.9%, according to a Motilal Oswal report. The decline follows a sharp fall in tech stock values, even as some fund houses selectively increased holdings in key companies like Infosys and TCS.

Flexi cap mutual funds are attracting significant investor money for seven months straight. This trend shows strong investor interest in the category. Experts advise against chasing performance and suggest focusing on long-term financial goals. Flexi cap funds offer flexibility for fund managers to navigate market conditions. Investors should continue SIPs for diversified equity exposure.