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Smallcap, midcap funds face risk of mean reversion: DSP MF MD & CEO

Data shows that markets may have mispriced the disinflationary trend that is gaining traction along with a stable demand and supply situation for government bonds, said Parekh

President of DSP BlackRock Kalpen Parekh
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Kalpen Parekh, MD and CEO of DSP Mutual Fund

Abhishek Kumar

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It is the right time for investors to rebalance their portfolios and raise their largecap allocation. This would have come down as a result of relative underperformance vis-à-vis mid and smallcaps, says Kalpen Parekh, managing director (MD) and chief executive officer (CEO), DSP Mutual Fund, in an email interview with Abhishek Kumar. Edited excerpts:

Some analysts have cautioned against the froth building in mid-cap and small-cap space. Are the concerns justified?

Currently, mid and smallcap stocks are mostly rising on account of strong inflows — both through direct buying as well as mutual funds. While many small and midcap companies

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First Published: Sep 26 2023 | 9:21 PM IST

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