ETMarkets Fund Manager Talk: Money to largely chase growth rather than a particular market cap segment: Devendra Singhal

After a sharp rally in the mid cap and small cap stocks, it’s obvious to expect that large caps will see a churn and play catch up. However, this may not always be the case, believes Devendra Singhal, executive vice president and fund manager, Kotak Mutual Fund. “This is the general view currently that large caps should tend to do better than the midcaps and small caps, and we largely abide by this view, but would say that money would chase growth rather than chasing largecaps/smallcaps or midcaps,” Singhal said in an interview with ETMarkets. Edited excerpts:

How has the year 2023 largely been for the funds managed by you? The year has been excellent so far in terms of the fund’s performance. All the funds managed by me are in the top quartile since the start of the calendar year. We would endeavour to continue delivering such performance in the coming year as well.

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How does 2024 look up for the Indian equity market? What are the key factors that will drive inflows? It is surely like gazing into a crystal ball to predict what lies ahead in terms of Indian equity market in 2024.
The only thing which can be said with some certainty is that the market is likely to be volatile. This is largely on account of a big political event of General Election 2024, which is likely to be conducted around May.
We have seen that in the past, markets have been volatile around the election results. Having said that, historically markets have given positive returns pre- and post a few