mutual funds: Largecap stocks getting good flows, not largecap funds: DP Singh, SBI MF

DP Singh, Deputy MD, SBI MF, says we may not see the largecap category itself having SIP flows, but the other funds also, every midcap and smallcap fund has some percentage of largecap stocks. So, do not look at the numbers just in the largecap category, but largecap stocks are also getting quite good flows.The first snapshot of the AMFI data has just trickled in for June. Compared to the previous month, how does that look like? First, weigh in on that.
DP Singh: It looks good. People are putting in money after the results. See, people have got a lot of confidence and good money is flowing into equity funds. Out of Rs 40,000 crore which we are talking about, almost Rs 21,000 crore comes through the SIPs only. But, yes, there is more confidence, more trust in the market, and because of policy continuation we will continue to have more flows not only from the domestic market but from outside as well.

In smallcaps and midcaps, we see strong inflows for the third straight month. However, for the largecap funds, the inflow has been rather muted for the third straight month. When can we see the inflows picking up for the largecaps?
DP Singh: I do not think we should be worried about the largecap getting inflows through mutual funds or not because otherwise also the largecaps, whenever FIIs are coming and/or some international players, are coming, they first get into the largecaps, that may not be coming from the mutual fund platform, but the larger companies are also getting flows. We may not see the largecap category itself having flows, but the other funds also, even if you talk about the midcap and smallcap, every midcap and smallcap fund has some percentage of largecap stocks. So, do not look at the numbers just in the largecap category, but largecap stocks are also getting quite good flows.There has been no stopping of inflows in midcaps and smallcaps. Do you believe that the momentum is still strong after the kind of runup that we have seen in this particular index? Will this momentum continue? Do you think the market is also looking forward to some of the thematic and sectoral funds?
DP Singh: Yes, the funds will continue to come because the SIP book per se is more into midcap and smallcap funds. So, when we look at Rs 21,000 crore overall, if Rs 14,000 crore is coming through that mode, that will automatically come.