The recent circular refinement of Sebi’s asset allocation framework for multi-cap mutual funds has boosted small-cap stocks. The Nifty Small-Cap 100 Index climbed 5.2% on Monday. The Nifty Midcap 100 index is up more than 2%. Market analysts expect huge buys in mid- and small-cap spaces by mutual fund companies amid Sebi’s announcement of new portfolio allocation rules that force multi-funds. capitalizations to invest a minimum of 25% of their portfolio each in large capitalization, mid capitalization and small capitalization stocks. companies. Short-term traders and direct investors will not let go of this opportunity to make gains while there is a buzz. Motilal Oswal Financial Services has listed 5 high conviction mid cap and small cap ideas that should perform well in the short to medium term.
“The stocks are basically healthy with good growth potential. You can buy this basket of 5 stocks with upside potential of 10-15% over a period of 1-3 months and keep a 7-8% stoploss on the market. overall basket, ”the report says.
Mid-cap recommendations include ABFRL, JK Cements, Tata Power, Ashok Leyland, and Dr. Lal Pathlabs.
Their recommendations on small cap stocks include Birla Corp, IEX, Team Lease, Essel Propack and KEI Industries. There may be upside potential of 10-15% over one to three months. Investors should keep a 7-8% stop loss on the overall basket.
Multi-cap funds represent over 19% of total actively managed equity mutual funds. This is the largest category with large cap plans also having a similar share in total AUM equity.
Emkay Financial Services has also listed its top recommendations for mid- and small-cap equities for portfolio managers.