Telecom space will underperform, says Ved Prakash Chaturvedi, MD of Tata Mutual Fund.

Chaturvedi told CNBC-TV18, "There are three reasons; I think telecom was a sector which was over owned earlier, some of the underperformance which has happened and which is expected to continue for atleast maybe in the next quarter or in the next couple of quarters, likely to put a strain on the sector. Apart from this also I think there is a general view that while medium term this sector will outperform, in the short-term there is a significant overcapacity and that has to play out. So I think for all these reasons short-term view of fund managers largely is that this sector will underperform and once that period of volatility is over, there would be a fresh look at the sector and people would take positions at that time."