Sebi’s recent circular asset allocation framework for multi-cap stock mutual funds has skyrocketed small-cap stocks. The Nifty Small-Cap 100 Index jumped 5.2% in trading on Monday. The Nifty Midcap 100 Index is up more than 2%. Market analysts are expecting large purchases in small and mid-cap spaces by mutual fund houses amid Sebi’s announcement of new portfolio allocation rules that require multi-cap funds to invest a minimum of 25% of your portfolio in large-cap, mid-cap and small-cap stocks. companies. Short-term direct stock traders and investors will not miss out on this profit opportunity while there are rumors. Motilal Oswal Financial Services has listed 5 high-cap, mid-cap and small-cap ideas that it expects to perform well in the short to medium term.
“The stocks are fundamentally strong with good growth potential. You can buy this basket of 5 stocks with 10-15% upside potential in a 1-3 month time frame and hold a 7-8% stoploss at the general basket “, says the Report.
Mid-cap recommendations include ABFRL, JK Cements, Tata Power, Ashok Leyland, and Dr. Lal Pathlabs.
His small-cap stock recommendations include Birla Corp, IEX, Team Lease, Essel Propack, and KEI Industries. There may be a potential 10-15% hike in one to three months. Investors should keep a stop loss of 7 to 8% on the general basket.
Multi-capitalization funds make up over 19% of total AUM actively managed equity mutual funds. It is the largest category with large cap schemes that also have a similar share of total AUM share capital.
Emkay Financial Services has also listed its top small and mid-cap stock recommendations for portfolio managers.
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