Mid-and-small cap MFs hold cash positions, fund managers delay investment

Fund managers don't want to get caught in value-traps, say experts

The sharp dip in equity flows in November may come as a source of relief for some fund managers, especially in the mid- and small-cap segment where over a dozen equity schemes are still holding cash positions between 7 per cent and 20 per cent.

Industry experts say schemes that had been attracting investor flows are yet to find suitable investment opportunities to fully deploy investor funds.

"Some of the small- and mid-cap schemes had received significant investor interest. The mid-cap space is still tracking the over-valued zone. So, fund managers are cherry-picking in this space, as well as waiting for the