Quoted Amit Saxena, CEO, Planman Financial to us,
“The reason is because FIIs have heavily invested in the large-cap stocks. Add to this the fact the major indices move only because of FIIs selling or buying. When it came to mid-cap and small-cap companies, the universe has been very wide. Different funds have different positions and weightages; thus stabilising out the fall or rise.” Truly, when it comes to large caps, most of the FII funds have more or less the same set of stocks. As a result, when frontline counters begin to fall, many fund schemes get affected together.Giving the other viewpoint, Anil Mascarenhas, Editor, India Infoline, revealed to us, “The advantage with sticking to a large-cap stock in bearish phases is when conditions improve; money will first get into the large stocks.” Saxena of Planman Financial rebuff ed, “And when conditions worsen, money will first get out of largestocks.” Rightly said, in times of correction, those surely are the large-cap stocks that feel the brunt, more due to the profile of investors being the same (FIIs) rather than simply due to the market capitalization of such stocks being large.
For Complete IIPM Article, Click on IIPM Article
“The reason is because FIIs have heavily invested in the large-cap stocks. Add to this the fact the major indices move only because of FIIs selling or buying. When it came to mid-cap and small-cap companies, the universe has been very wide. Different funds have different positions and weightages; thus stabilising out the fall or rise.” Truly, when it comes to large caps, most of the FII funds have more or less the same set of stocks. As a result, when frontline counters begin to fall, many fund schemes get affected together.Giving the other viewpoint, Anil Mascarenhas, Editor, India Infoline, revealed to us, “The advantage with sticking to a large-cap stock in bearish phases is when conditions improve; money will first get into the large stocks.” Saxena of Planman Financial rebuff ed, “And when conditions worsen, money will first get out of largestocks.” Rightly said, in times of correction, those surely are the large-cap stocks that feel the brunt, more due to the profile of investors being the same (FIIs) rather than simply due to the market capitalization of such stocks being large.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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The Sunday Indian - Greatest News weekly
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Maya jaal spreads far & wide!
Another hogwash!
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While the mayhem continues!
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The art of splitting hair?
POTA? Funny!
The army’s fallen behind China
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