Expert view, Aug. 31 -- Umeshkumar Mehta, CIO at Samco Mutual Fund, believes a range-bound market may impact domestic capital inflows. He, however, added that the current nature of domestic participation is structurally different due to the increasing formalisation of household savings, greater financial awareness, and the convenience of systematic investing. In an interview with Mint, Mehta shared his views on Q1 earnings, sectors he is positive about and the AI trade. Edited excerpts:

While Nifty's headline performance over the last two years has been relatively subdued, we do not believe this, by itself, poses a meaningful risk to domestic flows at this stage.

The more important change over the past few years has been the Indian inve...