Many stocks in the mid- and small-cap space have surged sharply over large-caps in the last year. 

In this episode of the “State of the Economy “ podcast, businessline’s Parvatha Vardhini C talks to Vinit Sambre, Head Equities at DSP Mutual Fund, who knows this space well, about the outlook for mid-and small-cap stocks.

Listen:Will the volatility continue?

In the podcast, Sambre attributed the rally in these stocks to a surge in liquidity and more high-net-worth individuals entering the space and said that ultimately, if earnings growth doesn’t match up to the expectation, there could then be a reality check for these stocks. He advised investors in this segment to have a long-term investment perspective. He also cautioned them about investing in microcap companies, which are known for their higher volatility. 

Though many passive fund launches have happened in the small-cap segment, Sambre advocated for actively managed in this space, asserting that select companies have the potential to outperform indices in the long run. 

Listen to this podcast to get a comprehensive understanding of the complexities and opportunities in the mid- and small-cap space.

(Host: Parvatha Vardhini C; Producers V Nivedita)


About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.