Fund managers are increasingly moving towards large-cap companies in preference to smaller players as the recent volatility in Indian stock markets has brought most front-line stocks down to attractive valuations.
An analysis of the total equity assets under management (AUM) of mutual funds shows that fund houses have been consistently increasing their exposure in large-cap firms with a corresponding fall in the share of mid-caps and small-caps.
According to data from Morningstar, a U.S.-head-quartered investment research firm, 69.25 per cent of the total AUM of equity and equity-linked savings scheme (ELSS) was invested in large-cap stocks in the month of October 2016, up from 65.45 per cent in October 2015 and 57.12 per cent in November 2013.
