MF veterans split on preference for Smids in Samvat 2080

Those arguing in favour of a shift in bias use valuation logic to support their claims, while those expecting a continuum said Smid indices’ outperformance to the Nifty in the past one year would impel retail investors to continue pumping money into small and mid cap schemes.

- Ram Sahgal , Mayur Bhalerao

The behaviour of retail investors in Samvat 2080 has turned out to be a point of contention among mutual fund industry veterans, with two out of four of them suggesting that the bias for small and mid caps (Smids) will continue despite a majority of these stocks underperforming their benchmarks, even as three-fifths of the bluechips outperformed the bellwether Nifty 50 index since Diwali last year. Those arguing in favour of a shift in bias use valuation logic to support their claims, while those expecting a continuum said Smid indices’ outperformance to the Nifty in the past one year would impel ret-ail investors to continue pumping money into small and mid cap schemes at the cost of large caps.