Mutual funds apply for new funds to take advantage of market recovery

Fund managers say stocks in the sector are available at beaten-down valuations, and large-sized banks will play critical role as credit off-take will be key to economic recovery

Mutual funds (MFs) have applied for a clutch of new funds to take advantage of the beaten-down valuations and expand their product basket, with markets showing signs of recovery.

Mahindra MF has filed for a focused equity fund, to build a portfolio oriented towards high-quality stocks. “We expect high-quality stocks to lead the recovery initially. Further, it makes sense to build such a portfolio at this juncture with quality stocks available at attractive levels,” said Ashutosh Bishnoi, managing director and chief executive officer, Mahindra Manulife MF.  

The 50-share Nifty, which has a large weight of blue-chips, has recovered 32.2 per cent from