The real alpha will still come from mid-caps and small-caps

Now the US is showing signs of slowing, while India is expected to maintain its growth rate. Mihir Vora Chief investment officer, TRUST Mutual Fund.

- Dipti Sharma

Large caps might deliver historical returns of around 11%, but the real alpha will still come from mid-caps and small-caps, believes Mihir Vora, chief investment officer, TRUST Mutual Fund. "I would lean more toward small-caps than mid-caps," he said. Nifty 50 earnings are expected to grow around 10% over the next couple of years, and small-caps could still see growth of 16-17%, Vora explained. He expects the broader market to continue to outperform the large-caps.

Edited excerpts:

Are you spotting any fresh trends in what investors are gravitating toward?

In the stock market, we are seeing a clear move towards the financial sector, especially the larger banks and NBFCs (non-banking financial companies).

How are you dealing with the market chaos? Have you changed your strategy considering the market downturn now?