index funds: Investors switching to index funds as high valuations cloud return prospects

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The investment value per folio of index funds stood at ₹4.01 lakh, while that of index fund was ₹1.94 lakh.

Synopsis

Large-cap funds witnessed an outflow in November for the first time in 15 months, with year-to-date inflows at just one-fifth of index funds, according to data from the Association of Mutual Funds of India (AMFI)

ET Intelligence Group: With expectations over near-term returns becoming weaker, investors are moving towards switch trade, where money is shifted to index funds from large-cap active funds.

Switch trade is picking up fast among Indian savers as it protects them from the downside due to elevated valuation that typically keeps the returns for the next 12 months muted. Inflows into index funds at ₹8,601 crore in November were the highest among

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