Mutual funds' narrow midcap universe: Only 150 firms to invest in

Assets already accounted for nearly a fifth of free float

Mutual fund (MF) allocations to the midcap segment may be under a question mark in light of the fact that it has only 150 companies to invest in, and a good part of the publicly available shares are already in the hands of domestic funds.

MFs’ midcap holdings account for 18 per cent of the free float of the companies concerned, shows a Business Standard analysis of data from fund tracker Value Research and market data from corporate tracker Capitaline.

While this does not necessarily ring alarm bells on an immediate basis, the universe bears watching and may require changes