Mid-cap shares to witness excellent rally in 2-3 years, Sunil Singhania tells Anil Singhvi

Zee Business Managing Editor and Market Guru Anil Singhvi on Monday spoke to Sunil Singhania, Founder - Abakkus Asset Manager LLP, in view of the market regulator Securities and Exchange Board of India's (Sebi) new regulation on multi-cap mutual fund schemes.

When Anil Singhvi asked Sunil Singhania about how he sees this new regulation by Sebi on multi-cap mutual fund schemes, the latter replied, "Allocation has to be across the board. Unfortunately, many multi-cap mutual fund schemes look like large cap only. And, that's why Sebi has issued this circular. "

Moreover, Sunil Singhania said that in coming 2-3 years, mid-cap shares will witness an amazing rally. 

Here is FULL VIDEO of Anil Singhvi-Sunil Singhania's conversation:-

Regulator Sebi on Sunday had said that mutual funds have many options to meet with the requirements of its circular pertaining to asset allocation framework for multi cap schemes based on the preference of their unit holders.

In a press release, the markets watchdog clarified that apart from rebalancing their portfolio in the Multi Cap schemes, mutual funds (MF) could inter-alia facilitate switch to other schemes by unit holders, merge their Multi Cap scheme with Large Cap scheme or convert their Multi Cap scheme to another scheme category, for instance, Large cum Mid Cap scheme.

The clarification came after the regulator tweaked asset allocation framework for multi cap mutual funds through a circular issued on Friday, requiring them to invest a minimum of 25 per cent each in Large, Mid and Small Cap stocks, and giving flexibility to the fund manager with the balance 25 per cent.

Industry body Amfi has also said that it is committed to follow market regulator Securities and Exchange Board of India's (Sebi) new regulation on multi-cap mutual fund schemes.

"Given the flexibility now offered by Sebi to facilitate switch to other schemes or merger of schemes, the appropriate portfolio changes will accordingly happen in an orderly fashion," the industry body said in a statement issued on late Sunday.

The Association of Mutual Funds in India (Amfi) has welcomed Sebi's clarification on multi-cap schemes, which is important for the orderly functioning of the market, as street had started anticipating huge flows in small and mid-cap stocks over next couple of months from the multi-cap schemes.

The industry body said it is grateful to the market watchdog for its open door policy for a dialogue and will gather feedback from members and revert for non-disruptive execution of multi-cap funds portfolio balancing.