Mid and small cap funds likely to outperform large cap: Vinit Sambre of DSP Mutual Fund
Synopsis
The small and midcap category has also shown a remarkable recovery since the March 20 pandemic lows, says Vinit Sambre, Head-equities, DSP Mutual Fund. Sambre says new investors need to be very cautious in this volatile market.
The small and midcap category has also shown a remarkable recovery since the March 20 pandemic lows, says Vinit Sambre, Head-equities, DSP Mutual Fund. Sambre says new investors need to be very cautious in this volatile market. Edited Interview.
The equity markets are still continuing the upward trend, despite the volatility. What is your outlook for the market in the near term?The equity markets are witnessing increasing volatility of late
Synopsis
DSP Mutual Fund has launched the DSP Floater Fund, an open ended debt scheme predominantly investing in sovereign bonds and overnight index swaps (OIS).
DSP Mutual Fund has launched the DSP Floater Fund, an open ended debt scheme predominantly investing in sovereign bonds and overnight index swaps (OIS). The fund house says that the new scheme aims to help investors navigate the interest rate cycles better. The NFO opens on March 04 and will close for subscription on March 17.
DSP Floater Fund will invest in securities in the duration band of 1 to 4 years with interest rate hedge using paid position in OIS. The scheme will allocate a minimum of 65% and a maximum of 100% in floating rate debt securities and have exposure mainly in sovereign securities issued by state and central government and OIS for creating synthetic floating rate exposure. The Scheme also proposes to invest up to 35% in fixed rate debt securities including money market instruments.
DSP Mutual Fund, sees value in agrochemicals and agri inputs, textiles and auto ancillaries among smallcaps.
Let us talk about the broader markets and the kind of pick up that you have seen there. Are there certain segments that you are more focused on? What about cyclicals?
The last few months have seen quite swift recovery in the economy. Equally important has been the Budget where the government has made the right noises in terms of their intentions to support the broader economy. In line with that, we are witnessing a lot of optimism as far as markets are concerned.
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The metal sector outlook may be good but if a long-term investor has to play the domestic cyclicals, cement, capital goods may be the other option to look at, says
DSP Mutual Fund.
Tata Steel has been on your accumulation list. How bullish are you on specific leaders within the commodities basket? What is the opportunity there?
As far as the commodities are concerned, the factors which are driving the commodity are a combination of global plus domestic. The global factors have to do with the huge amount of liquidity which is chasing the asset classes and which has caused some bit of commodity reflation. The demand improvement on the other hand will be a bit of a mixed outlook, given that most countries globally are still facing the challenge of pandemic.