InvestorQ : Is it correct that Indian mutual funds have been buying mid cap and small cap shares in the last one month and that is the justification?
rhea Babu made post

Is it correct that Indian mutual funds have been buying mid cap and small cap shares in the last one month and that is the justification?

Answer
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8 months ago


Fund managers are of the view that the year 2020 could actually belong to mid caps and to small caps and these funds have seen huge inflows in the last one month. In fact, in January, mid cap and multi cap funds saw more inflows than large cap funds. Most fund managers are getting tired of buying the index names and are taking a more stock specific approach to mid cap stocks. In the last one month some of the mid cap stocks that MFs accumulated include NMDC, Page Industries, Narayana Hrudayalaya, United Breweries and Cholamandalam Finance. In addition, the small caps stocks that attracted interest among the mutual funds include KEI Industries, MCX, La Opala, CARE Ratings and V-Mart Retail. Several large brokers have issued buy calls on NMDC in the last few weeks.