Why according to me “size” of aum will not impact performance?
May market participants believe size of aum as one of the negatives of mutual fund. And general belief is that if aum grows above 20,000 cr then its very difficult to create alpha because fund manager can not participate in small cap companies
I personally believe thats not the case. Indian equity market is just getting started, it will keep flourishing. After 10 years we may be surprised by its depth. SEBI defines small cap companies ranked from 251st position onwards
Following is chart I found from Tata mutual fund. The latest i checked on Screener – 251st company is CG consumer with market cap 17,386 cr
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