June is typically a bullish month for crude oil, and most of the downside has likely already played out. However, if the risk-off sentiment in emerging markets intensifies, there could be significant upside potential. A price increase of 10–12% wouldn’t be unexpected, according to the monthly report.

Momentum index funds are volatile and better suited for SIPs over lump-sum investments, especially amid market corrections. Experts advise keeping them as part of a satellite portfolio, not core holdings. Despite short-term underperformance, momentum has shown long-term outperformance. SIPs help manage risk and benefit from market cycles patiently.

Smallcap mutual funds outperformed in May, delivering an average return of 8.2%, with DSP, Quantum, and Motilal Oswal Small Cap Funds leading. Experts attribute the surge to valuation corrections, improved sentiment, and domestic inflows. However, caution is advised as volatility remains high. Smallcap schemes suit aggressive investors with a long-term horizon and are not recommended for beginners.

Nippon India Mutual Fund introduces the Income Plus Arbitrage Active Fund of Fund, closing on June 11, aiming for stable returns through debt and arbitrage investments. Experts suggest these funds, with a mix of debt and arbitrage, offer tax-efficient returns for conservative investors with a 2-3 year horizon.

In a volatile market, experts urge investors to continue SIPs, emphasising long-term benefits, disciplined investing, and compounding. Despite recent market recovery, attractive valuations—especially during dips—make a strong case for continuing or increasing SIPs. Experts also suggest staggering lump-sum investments, opting for large-cap, multi-asset, or international funds to diversify and manage risks effectively.

Flexi-cap funds provide broad market exposure by allowing fund managers the freedom to move across large-, mid-, and small-cap stocks based on changing market conditions. “Their adaptability makes them a solid core holding for many portfolios. However, relying solely on flexi-cap funds carries risks like manager bias and inconsistent alpha generation,” said Rajesh Minocha

Nippon India Taiwan Equity Fund topped equity fund returns in May with a 21.69% gain, driven by a surge in Taiwanese tech stocks. Experts highlight that while global funds may offer short-term gains, Indian markets offer better long-term prospects. Investors are advised to focus on fundamentals and risk appetite when considering international exposure.