What is your view about mid-cap funds this year?
- Sudhakar
I don't have any outlook for a calendar year. But I'm confident that over a period of next three to five years, mid-cap funds will beat large-cap funds by a wide margin. They'll also beat multi-cap funds by a meaningful margin.
However, in 2019, these funds may just languish, as many of them have attained rich valuations and are now being corrected. Further, a strong headwind is there. Since these funds have already gained much popularity, they have turned quite large. And when turned large, some of these funds are facing difficulty to perform.
I can't give a statement for all the mid-cap funds but any mid-sized fund will hold great promise in the next three to five years. Anyone who is fine with a volatile investment and has been investing over the past one to one and a half year must continue with his investments because mid-cap are the only high-yielding long-term instrument.
This article was originally published on April 16, 2019.
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