Don't rule out mid- and small-caps altogether, says Rajesh Iyer

In the run-up to the general elections, the investment spend by the government and push for agri or rural growth should be good from the economic growth standpoint, says Rajesh Iyer

Despite the high valuations, opportunities exist in equities across large-,mid-and small-caps, says Rajesh Iyer, MD & CEO of DHFL Pramerica Asset Managers. In an interview with Ashley Coutinho, he adds that markets may witness volatility in the next 6-12 months and investors should stick to quality businesses. Edited excerpts:

What changes do you foresee for the mutual fund industry as it grows in scale? 

Manufacturers will have to invest substantially to enhance servicing capabilities and devise ways to handhold investors through market volatilities. As the industry matures, manufacturers will have to become more solution-oriented rather than product focussed. Reach and