"CHASING OUTPERFORMANCE ALWAYS CAN BE DANGEROUS"

DP Singh, Deputy MD & Joint CEO, SBI Mutual Fund, on why mid-caps provide quality opportunities

- BY RIDDHIMA BHATNAGAR

SBI MUTUAL FUND, the asset management arm of State Bank of India, manages a portfolio of more than ₹11 lakh crore. DP Singh, Deputy MD & Joint CEO, says foreign institutional investors (FIIs)—which have sold shares worth ₹1.50 lakh crore approximately this financial year alone—will return once global uncertainties surrounding the new US administration subside. He also talks about why people have confidence in the Indian markets. Edited excerpts:

Q: When markets are volatile, what are the dynamics of the mutual fund industry? What is your view on FII selling?

Markets are volatile by nature, so we are always prepared for that as a fund house. This downturn, which happened in the last three-four months, has indicated that our fall has been generally much less than the market fall.

I also feel that fund outperformance is important in the market, but chasing outperformance always can be dangerous, as this increases the risk.