MFs turn buyers of mid-caps

Attractive valuation of mid-cap stocks, compared with their large-cap counterparts, has led domestic fund managers to turn buyers of shares of mid-cap companies of late.

Fund managers expect mid-cap shares to reap at least 5 per cent higher returns than large-caps in the near future. Along with attractive valuations, funds are also buying mid-cap shares because of new schemes dedicated to these sectors.

Among other major developments, Mirae Asset Global Investment (India) has received the market regulator Securities and Exchange Board of India's final approval to begin mutual fund operations in the country.

Morgan Stanley Mutual Fund has roped in Birla Sun Life Mutual's Jayesh Gandhi and Navneet Munot as lead fund managers for their Indian equity products.

Asset trends
The assets under management of India's top 10 fund houses in November stood at Rs 3.832 trillion, down 1.39 per cent from a month ago, according to data released by Association of Mutual Funds in India on December 4.

Heavy outflow from liquid and liquid plus funds amid tight inter-bank liquidity eroded the asset base in November.

Assets under management of Reliance Mutual Fund as of November-end stood at Rs 77765 crore, down 2.76 per cent from October-end.

Though there were huge inflows into its banking and power sector-dedicated equity funds, Reliance Mutual witnessed outflows from short-term debt schemes, especially liquid and liquid plus plans, resulting in erosion of asset base.

Assets under management of DSP Merrill Lynch Mutual Fund in November stood at Rs 19485 crore, up 7.28 per cent from October, because of asset growth in cash plus fund.

Assets under management of JM Financial Mutual Fund in November jumped to Rs 11314 crore, up 31.4 per cent from October, led by robust inflows in equity and debt schemes.

SBI Mutual Fund's assets under management as of November 30 stood at Rs 27360 crore, up 2.88 per cent, compared with Rs 27594 crore in October.

Assets under management of DBS Chola Mutual Fund in November fell to Rs 3672 crore, down 28.85 per cent from October. The fund house was worst-hit among 32 domestic mutual funds.

Domestic mutual funds emerged as net buyers of equities worth Rs 2170 crore in November as share valuations turned attractive because of market correction, as per data released by Sebi on Monday.