IGI Logo

Below the Quote on Small and Midcap By Mr. Abhishek Jaiswal, Fund Manager at Finavenue 

"The recent decline in small and midcap stocks reflects profit booking following a strong rally, compounded by global market uncertainties. While short-term volatility is inevitable, the broader fundamentals of quality midcap companies remain robust, supported by India's strong economic growth and ongoing structural reforms. Investors should prioritize businesses with solid balance sheets and sustainable earnings growth rather than reacting to transient market fluctuations.

Over the past five years, small-cap earnings have grown by 19.6%, while price appreciation has been 26.3%. The recent correction has effectively removed excess froth from valuations. With the upcoming Q4 results, we anticipate renewed momentum, positioning small caps for the next phase of growth

For a well-balanced portfolio, small-cap allocation should be limited to 25% based on risk appetite and investment horizon. A disciplined approach, prioritizing quality over speculation, is key to navigating this space successfully"

Above views are of the author and not of the website kindly read disclaimer