Trust Mutual Fund’s shift towards small and mid-cap stocks signals a new phase for Indian equities

Mihir Vora of Trust Mutual Fund highlights a growing preference for domestic growth sectors and smaller companies amid improving liquidity and evolving sector leadership in India.

Mihir Vora, chief investment officer at Trust Mutual Fund, said the firm’s push past ₹5,000 crore in assets under management reflects a market backdrop he sees as more supportive for Indian equities. In interviews with Business Today, Moneycontrol and The Economic Times, Vora pointed to easing geopolitical tensions, steady FCNR inflows and fading enthusiasm around the global artificial intelligence trade as factors helping draw foreign money back into domestic stocks while easing pressure on the rupee.

He said the recent tone of the market has favoured a broader set of shares rather than the biggest names, with Trust Mutual Fund leaning towards small- and mid-cap companies. Vora was less constructive on large-cap information technology services, arguing that the sector faces structural headwinds even as investor attention rotates elsewhere.

Instead, he sees stronger opportunities in contract development and manufacturing organisations, commonly known as CDMOs, along with consumer discretionary businesses, precious metals and companies supplying India’s data centre build-out. The investment case, he suggested, is less about chasing the most crowded global themes and more about finding domestic growth areas with room to compound.

Vora’s comments come at a time when Indian markets have been sensitive to shifts in foreign flows, currency trends and sector leadership. His remarks suggest that, for now, the fund is positioning for a market in which liquidity is improving but returns may be more attractive away from the large-cap technology names that have dominated earlier cycles.