The Nifty50 declined by 4.8% in June 2022 on the back of a sharp global market correction, inflation worries, falling rupee and continued FII selling. BSE Midcap Index and BSE Small cap Index continued to underperform the Nifty and declined sharply by 6.2%/6.0%, respectively.
The Federal Open Market Committee (FOMC) in its July meeting hiked policy rates by 75 bps, taking the federal funds rate to 1.50%-1.75%. The pace of Quantitative Tightening remained unchanged. The dot plot indicated that the federal funds rate will move to 3.4% by December 2022 and 3.8% by December 2023 before moving lower to 3.4% by December 2024.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.