Largecaps or mid & smallcaps? Here's what you should pick for next five years
Updated : May 29, 2019 02:34 PM IST
Mid and Smallcaps remained under pressure for the last 18 months due to a sharp rise in crude oil prices, corporate governance issues, muted earnings growth and uncertainty around the general elections among other issues.
As of May 27, the S&P BSE Midcap index was trading 11 percent below its 52-week peak and the S&P BSE Smallcap index was down about 15 percent from its 52-week high.
After the NDA government came into power in 2014, the Forward PE of Mid Cap Index started to trade at a premium over the Nifty50 Fw PE. This continued for around four years in a row.