UTI Equity Fund (19.76 per cent), Kotak Select Focus Fund (25.62 per cent) and Reliance Equity Opportunities (22.11 per cent) have also generated healthy returns over the past three years. Neeraj Deewan of Quantum Securities said one needs to be wary of which midcaps s/he is buying at the prevailing valuations after the recent runup. Even rural India can contribute there," Deewan said. "With the midcap and smallcap stocks yet to correct as much as their largecap counterparts have and many of them still quoting at a premium, it may have made mutual funds more cautious about their midcap holdings. In the largecap space, you have a lot of names where you can see some momentum coming back as the seventh pay commission award has come into play and monsoon has progressed well.

Source: Economic Times July 04, 2016 07:55 UTC