Equity markets have been touching all- time highs, but mid-caps continue to slide. While NIFTY touched a record high of 11,172 points today, the S&P BSE MidCap index has already fallen by 11.7% so far this year. This was after a stellar run in 2017. Should investors invest in mid-cap funds now, is it a good time? Or do you see more pain in this segment?
Vinod Jain, Principal Advisor, Jain Investment Planner Pvt Ltd
We have seen sharp contrast in performance of large companies vis-a-vis mid-sized companies. Companies like HDFC Bank, HDFC, Kotak Bank, HUL, TCS, Infosys and Reliance contributed to strong performance by Nifty while most of the mid-sized companies witnessed sharp price correction. We have seen more than 20%+ divergence between performance of large-cap over mid-cap which by far is the biggest divergence in past four years. Most of the market participants are lacking confidence even at market high. Rupee depreciation, commodity price rise, interest rate rise, election uncertainty and global market volatility is getting factored-in. Investors at large are losing faith over short term prospects of market.
