Small-cap deployment only a near-term problem: Shridatta Bhandwaldar

'From a near-term point of view, there is exuberance and that's leading to some challenges'

Equity mutual funds (MFs) have seen a surge in outflows in recent months as investors booked profits after a major rally in stock prices. In an email interview with Abhishek Kumar, Shridatta Bhandwaldar, Head Equities, Canara Robeco MF says investors should avoid making redemptions based on market movement, and should rather focus on their goals and liquidity needs. Edited excerpts:

Are concerns that markets have overheated after a sharp jump from this year’s lows justified?

There is a modest upfronting of returns that has happened over the last three month or so.  We believe that this is in line with