Last year saw many mid- and small-cap stocks surge in share price compared to larger-cap stocks.
In this episode of The State of the Economy podcast, Business Line’s Parvatha Vardhini C talks about the outlook for small and mid-caps with Vinit Sambre, Head of Mutual Fund Equities at DSP, a space he knows well.
listen:Will volatility continue?
On the podcast, Sambre attributed the rise in these stocks to a surge in liquidity and more high-net-worth individuals entering the space, saying that ultimately, if earnings growth doesn’t match expectations, there could be a reality check for these stocks. He advised investors in this field to have a long-term investment horizon. He also warned them against investing in micro-cap companies, which are known for higher volatility.
While many passive fund launches have taken place in the small-cap space, Sambre advocates active management in this space, claiming that select companies have the potential to outperform the index over the long term.
Listen to this podcast for a comprehensive understanding of the complexities and opportunities in the small and mid-cap space.
(Host: Parvatha Vardhini C; Producer V Nivedita)
Podcast about the state of the economy
India’s economy has been hailed as a bright spot amid the general gloom gripping the rest of the world. But while other industries appear to be firing on all cylinders, several continue to stall. To help you understand the contradictions in this country, Business line Bringing you podcasts from experts ranging from finance and marketing to technology and startups.