Markets have priced in a stable govt: Kotak Mahindra Asset Management MD

There is still room for a downside in momentum-driven micro-, mini- and small-caps, says Nilesh Shah

Mid-caps and small-caps are still at a premium despite the recent correction, Nilesh Shah, managing director, Kotak Mahindra Asset Management, tells Ashley Coutinho. According to him, there is still room for a downside in momentum-driven micro-, mini- and small-caps. Edited excerpts:
 
What changes do you foresee for the mutual fund industry as it grows in scale?
 
The industry has to change its processes to handle the increase in size. They should not change the principles that helped the industry grow to this level. The principle of value addition, which is giving the excess return over benchmark with appropriate