In the last three years, two fund houses stopped taking fresh money into their mid-cap schemes. Reason: As valuations were too high, they found there were hardly any opportunities to invest in mid-cap stocks. Why recall this fact at this point? Because, individual investors are now facing what those mutual funds faced then. Valuations are extremely high and it is difficult to digest buying stock at the multiples at which a majority of them are trading. But the fact is that, in an emerging market like India, there is a big set of companies which will grow at a pace which is higher and better than many others. So, one has no choice but to be bullish on India. Just remember two things. First, be careful about what you are buying. And two, buy for the long term.
