Mutual fund managers are increasingly being choosy while picking stocks in the mid-cap and small-cap space amid concerns over rich valuations. In January, they selectively bought pharmaceuticals, while shuffling their holdings in the banking and financial services industry (BFSI) space after shares of private lenders fell on worries about their profitability.
Money managers of various small-cap mutual fund schemes have increased the number of stocks in their portfolios as continued flows into the product and rich share valuations have forced them to broaden their holdings.
CIO-IME-branded strategies, Ashi Anand, shares insights on the value of domestic pharmaceutical franchises and the infrastructure space. Anand also discusses the potential of market infrastructure-related stocks and the financialisation trend in India.
