ICICI Direct's small cap stocks portfolio for multi cap mutual funds1 min read . Updated: 15 Sep 2020, 10:56 AM IST
Most of the multi cap funds at present are large cap biased with around 70-80% of their portfolios in the bigger companies.
Sebi’s announcement of the new norms mandating multi cap funds to invest at least 25% each in large cap, mid cap and small cap stocks is expected to bring fresh buying worth ₹25,000 crore and ₹10,000 crore in small caps and mid cap stocks respectively, says a report by ICICI Direct. Sebi issued the circular on portfolio allocation of multi cap equity mutual funds on Friday. ICICI Direct came out with a small cap portfolio for funds. "Our portfolio consists of small cap companies with robust business model and earnings visibility making them attractive buys for funds," says the report.
Here's ICICI Direct's model small cap portfolio
Company, Weight, No of Stocks
Amber Enterprises, 11.1%, 1
Midhani Ltd, 9.4%, 8
Birlasoft, 10.3%, 10
Inox Leisure, 9.9%, 6
Radico Khaitan, 11.7%, 5
Mayur Uniquoters, 9.8%, 6
Bajaj Electricals, 8.5%, 3
Sudarshan Chemicals, 10.5%, 4
Caplin Point Laboratiories, 9.3%
TCI Express, 9.6%, 2
- It is a high risk portfolio
- 100% exposure is in small cap stocks
- Inception date of the portfolio is September 14
- The portfolio is benchmarked against Nifty 500
Multi cap funds constitute over 19% of the total actively managed equity mutual funds AUM. It is the biggest category with large cap schemes also having a similar share in the total equity AUM.
Most of the multi cap funds at present are large cap biased with around 70-80% of their portfolios in the bigger companies. Though mutual funds have an option to merge, or convert their multi cap fund to other category, market analysts expect a huge wave of buying in mid and small stocks if these schemes decide to remain as multi caps and abide by the new portfolio rules.