Motilal Oswal Asset Management maintains equity investments with 1-3% cash positions. Chaturvedi foresees strong FY25 earnings and investment potential in new-age technology, healthcare, manufacturing, and NBFCs, amidst favorable market valuations and exit load adjustments. He also says that Motilal believes that the midcap and smallcap stocks might have higher growth in the future.
The assets under management (AUM) for domestic mutual funds (MFs) have grown at a good clip, but the industry has failed to make significant inroads in the hinterlands. At the end of March 2021, the AUM from T30 (top 30) cities stood at Rs 26.07 trillion, while that from the so-called B30 (beyond 30) cities stood at just Rs 5.36 trillion. The share of B30 cities has remained in the range of 15-17 per cent of the AUM since FY19. Industry players say improving the penetration beyond the top centres will require setting up more branch networks and empanelment of distributors. Further, the industry will have to focus on investors’ education and the creation of more infrastructure. Market participants say barring a few top players, the industry may not be able to afford this.