Investors will get a chance to build positions in midcaps and small caps in coming days, said Taher Badshah, CIO equities of Invesco Mutual Fund.
"I think in the next few months, in the volatility, in the run-up to the elections, we will get a fairly decent chance to build a position in the midcap and smallcap space for an eventual return target of two-three years and beyond,” said Badshah.
One of the nicer points about the rally for the last one week has been the participation of the broader market. Month-to-date, the midcap index has risen by about 3.8-4 percent, while the Nifty itself is up 1.8 percent quite clearly indicating the outperformance of the midcap index or at least ending its underperformance.
Compared to the situation that was about six months ago, when midcaps and smallcaps were on a roll, the main deterrent was basically valuations and at that point in time, valuations were completely untouchable, Badshah said.
"Since then we have seen a fairly decent amount of correction in the midcap and the smallcap space," he said, adding that the index itself has corrected quite meaningfully and then individual stocks have done even more so.