Last Updated : Apr 21, 2017 02:07 PM IST | Source: CNBC-TV18

Election victory gave clear direction to investors: Sundaram Mutual Fund

Sunil Subramaniam of Sundaram Mutual Fund also said that apart from the positivity, unplanned taxpayers rushing to invest before the financial year could have led to the surge in flows

Mutual fund investments by retail investors witnessed a surge during March this year. Equity fund investments through ELSS schemes was to the tune of Rs 8,300 crore.

Sundaram Mutual Fund attributes this surge to people’s confidence in the stable government post the assembly polls.

“The results gave a clear direction that the government was on track post demonetisation. The positivity in flows are related to the positivity towards the government,” Sunil Subramaniam, CEO, Sundaram Mutual Fund told CNBC-TV18.

Another reason could also be those investors, who did not plan their taxes well, hurrying to make such investments, he said.

He is reasonably placed with private banks and said that the key lies in wholesale lending against retail lending. He was also happy with the guidance provided by them.

On the rally in midcaps and high valuations, Sunil highlighted that investors were buying into the growth story. He explained how investments by domestic investors into midcaps have been high, but one needs to look at the sector from an EPS earnings growth perspective against large caps.
First Published on Apr 21, 2017 02:07 pm
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