Without mid-caps in your portfolio, your returns even in a long bull run is unlikely to be high. That’s because, although they come under pressure during corrective phases, mid-caps have given the best returns in the past 10 years. Why are mid-cap companies able to grow rapidly in a growing economy like India? Because they are nimble. Whether it’s the cost of capital or new markets opening up, it is mid-sized companies that seize opportunities to accelerate growth. Now, some key questions: Which stocks to own? When to buy them? And for what horizon? Finally, there has to be a good reason why you are buying a particular stock. It could be market size, a company being the segment leader, or even one with a library no one can replicate.
