Where are fund managers investing in this all-time high market?

India's equity markets have been on a roll. Foreign investors have pumped in Rs 1.2 lakh crore this year alone, domestic mutual funds have injected over Rs 60,000 crore, and the Sensex, as a result, has grown nearly double digits year to date. Given the euphoria, we decided to speak to three prominent fund managers and understand their strategy from now on. Of valuations and strategies With markets in red-hot mode, all the fund managers were unequivocally cautious about market valuations. Niket Shah (Fund manager at Motilal Oswal Mutual Fund) Shah, who manages the flexi-cap and mid-cap funds at Motilal Oswal, points out that mid-cap valuations are marginally higher than their five- and ten-year averages. He was also "cautious" about the market in the near term, saying there might be a period of consolidation: "Given the current circumstances, we may see sector rotation inside the index, and we are cautious about the entire market. Overall, we may not see a large rally in the near future, and there may be some consolidation." The strategy going forward Although small-cap companies have performed exceptionally well, Motilal Oswal