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[hfe_template id='11223'] [ad_1] Synopsis Every now and then the market goes through phases, where it prefers a certain set of stocks, not based on sector but based on the overall market cap. So, sometimes it is large caps, at other mid-caps. Now this partially happens, due to the flows which are coming to markets. For example, if more flows are coming to mid-cap or multicap schemes there is bound to be out performance in the mid-cap space. Now what it does is that it tends to create a sudden surge in mid-cap. Similarly when there is an outflow like the kind of one which we saw in March this year, midcap stocks tend to decline sharply. Essentially, it is the flows which impact the broader matrix of how midcaps behave. So there are phases not owning a midcap stocks appeared to sin and then there phase, where owning them appears to be sin. But if one focuses on the underlying business and some critical parameters, there is a possibility of getting rid of these phases of an...

[hfe_template id='11223'] [ad_1] Synopsis It is well known that investing in mid-cap comes with its own risks, right from business to risk to market risks. So, as a basic principle one should be more cautious while investing in mid-caps. But the fact is however one might try the fact is that when the narrative is bullish we all tend to lower our guards and end up buying stocks which one should have not bought. So, what about using parameters which probably is not full proof, but history has shown that over a long period of time, it has worked well. That is staying with mid-cap companies from strong industrial groups, which have other companies which are running well. The reason for this strategy is simple, when that midcap company of a large group will see a tough time, at a group level there is management bandwidth in terms of both financial and human resources to help it over bad times. Also the fact that a large group with a track record of creating business will make...