The recent advisories by market regulator SEBI and the top mutual funds body AMFI and fund flows to the mid- and small-cap space are "prudent," according to Radhika Gupta of Edelweiss Mutual Fund.
"A lot of money has come into this high-risk category and the last thing you want is an unforeseen situation around liquidity. Liquidity is of prime importance," she told NDTV Profit on 'The Mutual Fund Show'.
The Securities and Exchange Board of India has asked mutual funds to proactively protect investor interest amid "froth" building up in the broader end of the Indian equity market.
"I worry (that) a lot of funds flowing into this space are for one-year performance-chasing. The SEBI and AMFI are saying, invest with your eyes open and buyers beware," she said.
On the rising participation of women investors in equities, Gupta said young millennials or Gen Z female investors, are part of the aspirational India and are a fast-growing lot working for financial independence.
She also noted the lack of women in senior leadership roles in asset management companies, in contrast with better visibility in the banking space.
Moreover, since AMCs draw their fund managers from the capital markets, the popular projection of this sector in the media is male representation, she said.
Watch the full conversation here:
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
