Unitholders have started questioning the rationale of mutual funds investing in loss-making new-age companies at lofty valuations. While a mutual fund’s exposure to a single stock is mostly minuscule, some experts believe that fund managers may be running out of ideas amid a steady rise in SIP contributions.
In recent times, mutual funds have faced some criticism for investing in IPOs of new-age start-ups despite the lack of track record and poor financials. What are the factors for selecting an IPO and are mutual funds taking extra risk by investing in IPOs? Moneycontrol spoke to Bharat Lahoti, Co-Head-Hybrid and Solutions Funds at Edelweiss Mutual Fund for answers. Listen in