Manufacturing, especially chemicals is an interesting sector, says SRE's Kirtan Shah

The government's move to promote exports and reduce import will have a positive impact on the manufacturing sector, especially chemicals, suggests Kirtan Shah, chief financial planner at SRE. In conversation with CNBC-TV18, he said that manufacturing is an interesting sector to look at.

"If you look at manufacturing especially chemicals etc, we have seen how it played out because of the government policies on export promotion and import substitution. I think manufacturing is a very interesting sector to look at."

He added that the liquidity framework of midcap funds are not as good as largecap funds. "While we talk about size, midcap funds are definitely going to be a large data point to look at. If I can talk about HDFC Midcap Opportunity Fund, at one point it was the best performing fund in the category. But as assets under management (AUM) rise, you saw that the fund actually could not deploy the incremental AUM coming into the fund because the liquidity framework of a midcap, smallcap fund -- which is not as good as a largecap fund. So I would definitely concur with the point that AUM will decide whether the fund is able to do good or bad in the future," Shah explained.