Dealing with volatility in small and mid caps | Value Research A deep dive into the market move by Chirag Setalvad, Senior fund manager, HDFC asset management
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Dealing with volatility in small and mid caps

A deep dive into the market move by Chirag Setalvad, Senior fund manager, HDFC asset management

The recent volatility in the mid- and small-cap space has scared many investors. Over the last one year, BSE small- and mid-cap indexes have fallen by 13 and 5 per cent, respectively. More worryingly, some stocks have fallen more sharply than these indices reflect. During this turbulent time, guidance from a professional who has kept his ship afloat is invaluable.

Well-known mid- and small-cap fund manager, Chirag Setalvad, manages the Rs 46,000 crore plus equity portfolio of funds like HDFC Mid-cap Opportunity and HDFC Small Cap. With a preference for picking up neglected sectors than hot stocks, he believes beaten-down sectors provide dual advantages.

First, there is a scope for earnings improvement in the future. Besides, it limits downside because of lower valuation. This belief is reflected in his current holding pattern, with public sector companies accounting for 8.6 per cent of his total equity assets under management out of which, 55 per cent is allocated to public sector banks.

Check out how this mid- and small-cap specialist has positioned himself in this turbulent time.


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