Key Points
A Balasubramanian, MD & CEO, ABSL AMC, says: though we are not putting the restrictions in our small and midcap fund and given the fact that we are relatively small compared to others, it is about Rs 5,000-6,000 crores size and at the same time, our portfolio liquidity parameters are much better than some of the other schemes which are large in size..
Second, one also has to note that when the portfolio is being constructed by money managers, he allocates money into the largecap, midcap and smallcap and then he keeps the cash..
Second, the additional parameters we also added to this, in consultation with the members of the AMCs, are more related to the exposure to the investor concentrations, the stock level concentration, then how the portfolio is constructed between large, mid, smallcap, and cash..
But it is more of checks and balances, given the fact that we are about $4.5 trillion market cap and mutual funds have become the larger players, a large pool of retail investors are also participating..
A Balasubramanian: The way we have been encouraging investors in the small and midcap given that the risk related to the small and midcaps compared to the other segment of the market is relatively higher..
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