Indian economy is exhibiting definite signs of recovery. The market, buoyed by the economic revival and reduction in risk aversion globally, has significantly moved up from its low in March 2009. We expect the current rally to sustain over a longer term. In these times, mid-caps tend to outperform large-caps. For instance, BSE Mid-cap index has outperformed the Sensex by a significant ~44% since March 2009.
We believe there are many mid-cap companies that offer high growth potential. However, participating individually in them could be difficult and risky, so we advise investing via a mutual fund. In the mid-cap space, we recommend investing in Sundaram BNP Paribas Select Midcap Fund (SSMF).
With a medium to long-term perspective, investment in midcap space would appearto be positive. Investment in the mid-cap space should boost equity investors’ overallreturns. Hence,we recommend investing in SSMF from mid-cap category.