Some of the most enduring financial principles are not first learned in markets. They are learned at home. In many households, money is managed through a quiet but powerful discipline: balance. A mother plans not around a single need or a single moment, but around multiple priorities moving together. There are expenses that need attention today, goals that will matter years from now, and uncertainties that may never arise but still deserve preparation.

That ability to balance the immediate with the long term, caution with ambition, and responsibility with aspiration offers a useful lens for investors as well—particularly in categories designed to combine stability, growth, and resilience. Wealth creation, too, is not built by depending on one opportunity or reacting to every market movement. It is built by participating across opportunities with structure, patience, and consistency.

This is where Multi Cap investing becomes relevant. At its core, the category is built on a simple idea: investors do not need to choose between large, mid, and small companies as separate opportunities. They can participate across the market capitalisation spectrum through a single, clearly defined framework. In a world where diversification is often mistaken for owning more products, Multi Cap funds bring the idea back to its essence: thoughtful distribution, structured participation, and long-term balance.

Why diversification needs structure, not more products

Diversification is one of the most widely understood principles in investing, but also one of the most frequently misapplied. It is often treated as a numbers game, with the assumption that more funds automatically translate into better outcomes. In practice, the opposite can be true. A portfolio spread across a dozen funds, each with overlapping mandates, may offer the appearance of balance without its substance.
True diversification is about how exposure is distributed across different parts of the market, not how many line items appear in a statement. Different market segments, large, mid, and small cap, tend to behave differently over time, each contributing in distinct ways to portfolio outcomes at different points in a cycle. Multi Cap funds are designed with this clarity in mind. By bringing together exposure across the market capitalisation spectrum within a single framework, with a mandated minimum allocation of 25% each to large, mid, and small cap equities, they deliver meaningful diversification without requiring investors to make and manage multiple separate decisions.

Staying invested across market cycles

Markets move in phases and leadership changes across cycles. What led the rally one year may lag the next, and trying to stay ahead of these rotations is a pursuit that often costs more than it gains. A balanced, multi-segment allocation helps investors sidestep this trap. Rather than reacting to which part of the market is outperforming today, Multi Cap investors remain exposed to all of it, participating as and when different segments come into favour. This way of thinking will feel familiar to anyone who has watched a household being managed with a long-term purpose. The goal was never to be right about the short term. It was to remain resilient through it.

When simplicity becomes an advantage

Managing a diversified portfolio independently is harder than it sounds. Monitoring multiple funds, tracking their relative performance, deciding when to rebalance, and staying the course through volatility are real demands on time and attention. For most investors, investing is one among many responsibilities, not the primary one.
A simpler, well-structured solution has a compounding advantage of its own: it gets followed. Multi Cap funds embed the allocation within the product itself, reducing the need for ongoing intervention. The investor’s job becomes staying invested, not staying vigilant.

How structure supports consistency

Long-term outcomes are shaped not just by what is chosen, but by how consistently an investor remains committed to it. Every unnecessary decision point is an opportunity to react rather than stay the course, and reactions, in investing, are rarely rewarded. Multi Cap funds reduce the number of decisions required. With broad exposure built in, there is less reason to tinker, less temptation to chase, and less noise to manage. This structural simplicity supports the kind of quiet consistency that compounds into meaningful wealth over time.

Conclusion

The most effective financial decisions are rarely the most complicated ones. They are the ones built around clear thinking, steady commitment, and a long enough horizon to let compounding do its work.

This Mother’s Day, it is worth acknowledging that this kind of investment wisdom did not originate in a financial model. It came from watching someone make the same quiet, unhurried, forward-looking decisions, year after year, with no fanfare and no shortcuts. Multi Cap investing reflects that same disposition: structured, balanced, and built for the long run.

(The author is Head – Products, Axis Mutual Fund)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

As many as six companies, including quick commerce unicorn Zepto and auto components manufacturer Dhoot Transmission, have secured Sebi’s approval to raise funds through initial public offerings (IPOs).

Other companies that obtained approval are Horizon Industrial Parks, Surgiwear, Crystal Crop Protection and Hotel Polo Towers, an update with the markets regulator showed on Friday.

These companies, which filed their preliminary IPO papers between October and February, obtained Sebi’s observations during May 4-8.

In Sebi’s parlance, obtaining observations is equivalent to securing approval to float a public offering.

Zepto and Dhoot Transmission filed preliminary papers with Sebi in December and February, respectively, using a confidential route.

According to people familiar with the development, Zepto is aiming to raise Rs 11,000 crore through its maiden public offering.
If the listing goes through, Zepto will join its rivals Zomato and Swiggy, both of which are already listed on the exchanges.Backed by private equity major Bain Capital, Dhoot Transmission is targeting to raise USD 250 million (about Rs 2,258 crore) through its IPO. The proposed IPO will comprise a fresh issue of equity shares along with an offer for sale (OFS) by existing investors; while promoters will not sell any stake through the OFS, sources said.

The two firms opted for the confidential pre-filing route, which allows them to engage with the Securities and Exchange Board of India (Sebi) for initial feedback on its draft document without it being publicly disclosed.

Horizon Industrial Parks, backed by global private equity firm Blackstone, plans to raise Rs 2,600 crore through its IPO, which is entirely a fresh offer of equity shares, with no offer for sale (OFS) component.

According to the draft red herring prospectus (DRHP), about Rs 2,250 crore from the proceeds will be used to repay borrowings.

Uttar Pradesh-based Surgiwear’s proposed IPO comprises a fresh issue of shares worth up to Rs 370 crore and an OFS of up to Rs 370 crore by promoter Ghanshyam Das Agarwal. Funds will be used for purchasing machinery, debt repayment and general corporate purposes.

Crop solutions firm Crystal Crop Protection plans to mobilise funds through an IPO comprising a fresh issue of shares valued at Rs 600 crore. Apart from fresh issues, there will be an OFS of 74,05,387 shares by promoters and investors, according to the draft papers.

As a part of the OFS, existing investors — International Finance Corporation and IFC Emerging Asia Fund LP — would offload shares.

Proceeds from the fresh issue would be used for debt payment of the company as well as its subsidiary, Saffire Crop Science, funding inorganic growth through unidentified acquisitions and strategic initiatives and general corporate purposes, draft papers showed.

Hotel Polo Towers’ proposed IPO is a combination of fresh issue of shares worth Rs 300 crore and an OFS of 71.2 lakh shares by promoters, draft papers showed.

Hotel Polo Towers develops, owns, operates and manages a chain of upscale and midscale hotels and resorts in the northeast, east and north India under the ‘Polo’ and ‘Max’ brands.

Shares of these six companies will be listed on the BSE and NSE.

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Flexible packaging materials manufacturer RFBL Flexi Pack Ltd on Saturday announced a price band of Rs 47-50 per equity share for its initial public offering, which opens for subscription on May 12.

The Rs 35.32-crore IPO of the Gujarat-based manufacturer and trader of printed multilayer flexible packaging materials comprises a fresh issue of up to 70,65,000 equity shares of face value Rs 10 each, the company said in a statement.

The issue will open for subscription on Tuesday, May 12, 2026, and will close on Thursday, May 14, 2026, on the NSE SME platform. The anchor investor bidding will open on Monday, May 11, 2026.

RFBL Flexi Pack Ltd intends to utilise Rs 35 crore of the IPO proceeds for repayment/ prepayment, in full or part, of all or a portion of certain borrowings availed by the company, while the remaining funds will be used for general corporate purposes and issue expenses, according to the offer document.

The company is engaged in the manufacturing and trading of printed multilayer flexible packaging materials such as plastic film rolls and pouches used across diverse industries including food, pharmaceuticals, home care, and consumer products.

Grow House Wealth Management Pvt.Ltd. is the Book Running Lead Manager (BRLM) to the Issue, while Kfin Technologies Ltd is the Registrar to the Issue.

As the focus moves away from the Iran war, investors and strategists alike are looking for the next leg up in equities. Many are turning to Asia.

Shares in South Korea and Taiwan have rallied the most in the world this month, with the surge in the Kospi index taking it up 78% for the year. The two markets have been key beneficiaries of the euphoria surrounding artificial intelligence, thanks to the growing dominance of giants Samsung Electronics Co., SK Hynix Inc. and Taiwan Semiconductor Manufacturing Co.

Equity-derivatives strategists are increasingly recommending trades to bet on more gains, just as traders chasing the rally push up the cost of options. The result: Implied volatility for stocks in Taiwan and Korea is rising along with those markets. It’s now hovering around peak levels versus the S&P 500 Index for both the Taiex and the Kospi 200 Index, with the Cboe Volatility Index sinking back below its one-year average.

“The strength of the move is producing extreme reversals from prior trends,” said Jun Gyun, a derivatives analyst at Samsung Securities Co., referring to the Korean market. That’s creating the “vol up, spot up” pattern, which could last for “some time, until a period of consolidation emerges,” he added.

Korean shares have been so in demand that Interactive Brokers Group Inc. started giving US retail investors direct access to the market. Meanwhile, the assets under management for leveraged exchange-traded funds have surged to a peak, and they’re likely to grow further as authorities have approved the local listing of those for single stocks, according to a recent JPMorgan Chase & Co. report that said the products keep the risk of “flow-driven overshoots alive.”
Samsung Securities’ Jun sees long-gamma strategies tied to rising volatility as favourable for Korean equities in the near term. Looking out three months or longer, he says traders should consider building short-gamma exposure in anticipation of a volatility peak.
At Societe Generale SA, strategists noted that the 12‑month variance spread between the Kospi 200 and S&P 500 has reached extreme levels. Yet a meaningful reversal would need a “more benign” oil and geopolitical environment and a pause in the tech rally, conditions they don’t see happening in an “orderly manner” now, they wrote in a report where they said they don’t advise positioning for this scenario.

Meanwhile, JPMorgan strategists recommended bullish structures on the iShares MSCI Emerging Markets ETF, expecting the equities to continue to outperform given the AI theme, a more supportive macro backdrop and strong fundamentals. Ahead of the upcoming summit between Presidents Donald Trump and Xi Jinping, where AI policies are poised to be key points, investors boosted bullish positioning in US-traded Chinese ETFs, buying call spreads on the iShares China Large-Cap ETF and calls on the KraneShares CSI China Internet ETF.

Separately, JPMorgan strategists led by Tony Lee advised call spreads on the Taiex or worst-of calls on the Taiwanese gauge, the Kospi 200 and Japan’s Nikkei-225 Stock Average to bet on the AI hardware rally.

“US large-cap tech, Korean memory and component suppliers, and Taiwan’s semiconductor ecosystem are all showing the same pattern — earnings delivery remains strongest where exposure to AI hardware bottlenecks is highest,” the strategists wrote in a note. “Hardware remains the earnings backbone of the AI theme, and Taiwan remains its most efficient index level proxy.”

In today’s financial landscape, investors are navigating a complex mix of rising geopolitical tensions, elevated crude oil prices, uncertain interest rate trajectories, and sharp swings in global equities. While markets may appear unpredictable, history suggests otherwise. Veteran market strategist Bob Farrell’s timeless investing rules offer a powerful framework for interpreting and navigating such phases.

Originally formulated decades ago, these rules remain strikingly relevant because they are rooted in human behavior, market cycles, and sentiment dynamics — all of which remain unchanged.

1. Markets Always Revert to the Mean

Farrell’s first rule emphasizes that markets eventually return to their long-term average.

In today’s context, several sectors—especially those linked to AI, defence, and select PSU themes—have seen sharp rallies. However, history suggests that overextended valuations tend to normalize, often catching late entrants off guard.

For Indian investors, this is a reminder:

Strong rallies are not permanent trends—they are phases.

2. Excesses Lead to Opposite Excesses

Markets behave like a pendulum—overshooting in both directions.
The recent surge in oil prices due to geopolitical tensions has led to panic in equity markets. But just as euphoria drives prices irrationally higher, fear can push them below fair value, creating opportunities.Smart investors recognize both extremes.

3. There Are No “New Eras”

Every cycle comes with a narrative—“this time is different.” Farrell strongly disagreed.

Whether it was the dot-com bubble, crypto mania, or today’s AI boom, speculative excesses never last forever. The current enthusiasm around new-age technologies may persist, but valuations will eventually align with fundamentals.

4. Sharp Rises Lead to Sharp Corrections

Markets don’t correct gently—they correct decisively.

The recent volatility seen in global and Indian markets—sharp intraday falls followed by quick recoveries—is a classic reflection of this rule. In such conditions, risk management becomes more important than return maximization.

5. The Crowd Gets It Wrong at Extremes

Retail investors tend to buy at market tops and sell at bottoms.

With social media, WhatsApp tips, and TV narratives influencing decisions, this behavior has only intensified. The surge in retail participation in India is positive—but it also increases the risk of herd-driven mistakes.

A contrarian mindset often delivers better long-term results.

6. Fear and Greed Drive Markets

Emotions overpower logic in investing.

Today’s market reflects both extremes:

Greed during sectoral rallies (PSUs, defence, railways earlier)
Fear during global uncertainty (oil shocks, war risks)

Successful investors are those who follow discipline over emotion.

7. Strong Markets Are Broad-Based

When only a few stocks drive the index, the market is weaker than it appears.

Currently, while headline indices may look stable, broader participation—especially in midcaps and small caps—has been uneven. This divergence signals fragility beneath the surface.

8. Bear Markets Have Phases

Bear markets don’t fall in a straight line—they evolve through stages.

Even in a correction, you’ll see:

Sharp declines
Temporary rallies
Gradual fundamental deterioration

This explains why markets often confuse investors before forming a clear trend.

9. Consensus Is Often Wrong

When everyone agrees on a market view, it’s usually priced in.

Today, debates around interest rate cuts, global slowdown, or continued bull markets are widespread. But markets tend to surprise the majority.

10. Bull Markets Feel Better Than Bear Markets

This may sound obvious—but it carries a deeper lesson.

Investors often underestimate risks during bull markets because rising prices create a false sense of security. The real test of discipline comes during downturns.

Timeless Wisdom for Modern Chaos

Despite algorithmic trading, AI-driven investing, and real-time data flows, markets are still governed by human psychology and cyclical behavior. That’s why Bob Farrell’s rules remain as relevant in 2026 as they were decades ago.

In the current environment:

• Stay disciplined
• Avoid chasing momentum blindly
• Use corrections as opportunities
• Focus on long-term fundamentals

Because in the end, while markets evolve, human behavior does not—and that’s where real investing wisdom lies.

Concerns around artificial intelligence disrupting traditional technology services have kept investors cautious on Indian IT stocks over the past year. Weak discretionary spending, slower global demand and muted earnings growth have further weighed on sentiment. However, veteran fund managers Rajeev Thakkar of PPFAS Mutual Fund and Sankaran Naren of ICICI Prudential Mutual Fund believe parts of the sector are beginning to look attractive again.

Speaking at the Groww India Investor Festival 2026 in Mumbai during a session titled The Art of Not Losing Money, the two fund managers shared their views on the changing IT landscape and whether AI could fundamentally alter the future of Indian software services companies. Both fund managers said that they are finding opportunities in IT even as broader sentiment towards the sector remains cautious.

Also Read | Parag Parikh Flexi Cap Fund increases stake in ITC, TCS, HDFC Bank and 14 other stocks in April

Veteran fund manager Sankaran Naren described the current setup in the IT sector as a “contrarian valuation call”, though he acknowledged that the industry still faces genuine disruption risks from AI.

“It is a contrarian valuation call. But whether it is a value trap, that is not clear,” Naren said at the event.

According to him, markets have sharply de-rated IT companies because investors fear that AI could reduce demand for traditional coding and software services. However, he said it is still unclear whether the sector is facing a structural disruption or merely a cyclical slowdown linked to changing global spending priorities.
“We are grappling with whether this is a value trap because of disruption, or a cyclical slowdown because of what is happening with AI capex. We are still doing the work,” he added.Naren also pointed out that if AI-led disruption becomes severe enough, the impact may not remain restricted to IT services alone.

“If AI is truly disruptive, several sectors will get disrupted. But the market is selectively punishing IT,” he said, while noting that allocations to the sector among mutual funds remain relatively low.

Rajeev Thakkar, on the other hand, highlighted how Indian IT companies have repeatedly navigated major technological shifts over the last three decades.

“In the late 1990s, people thought these companies were only about Y2K. Then came the dotcom crash. Later during the SaaS wave, people questioned why clients would even need IT services companies,” he said.

According to Thakkar, the industry has historically adapted to disruptions rather than getting displaced by them.

“People are now saying this time it is different, that AI is replacing developer work and there may not be enough work to go around,” he said.

However, Thakkar argued that AI-driven productivity may ultimately expand demand rather than shrink it. Referring to the economic principle known as Jevons’ Paradox, he explained that lower costs often lead to higher overall consumption.

Also Read | New to mutual funds? Experts suggest using the 50-30-20 rule to build a smart investment strategy

“If 10 people can now do the work of 50, costs come down. But lower costs can also increase usage and demand,” he said.

He drew parallels with industries such as telecom and discount broking, where falling costs eventually expanded customer adoption and overall market size.

Despite their constructive stance, both fund managers maintained that their outlook remains dynamic and dependent on how the AI narrative evolves globally.

“As of now, that is the base case. But as Naren said, we will have to keep re-evaluating,” Thakkar added.

The broader discussion focused on risk management, capital preservation and disciplined investing, but the relatively optimistic view on IT stood out at a time when the sector remains largely out of favour among investors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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