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Russian (RU) Apr 05, 2025, 01:55:47 PM IST
1/5
Amit Jainon small & midcaps
Small and midcap stocks have performed exceptionally well post the COVID-19 era. However, Amit Jain, Co-Founder of Ashika Global Family Office Services in an interview with ETMarkets sounded cautious that FY25-26 will require a more selective approach.
He points out that valuations in certain pockets have become stretched, and this makes careful stock picking not just important but necessary.
ETMarkets.com
Instead of chasing short-lived, momentum-driven rallies, Amit Jain advises investors to focus on fundamentally strong companies.
He emphasizes the importance of choosing businesses with strong earnings visibility, healthy balance sheets, and scalable business models. According to him, these factors are key to long-term success in the small and midcap space.
Agencies
Liquidity will play a defining role in how small and midcaps perform in FY26. Jain highlights that investors should closely monitor FII flows and domestic institutional activity, as these elements are critical in sustaining any rally. Without sufficient liquidity support, the uptrend in smaller companies may not hold.
4/5
Staggered Investment Approach
Jain recommends avoiding lump-sum investments in this segment. Instead, he suggests a staggered investment approach to better manage the inherent volatility. This method allows investors to enter at different price points, reducing risk while still participating in the long-term growth of the sector.
ETMarkets.com
In today’s scenario, if the stocks are down -20% to -50% I would recommend to do partial averaging in quality NIFTY 500 stocks. As of now we would still be weary of Small-cap & Micro-Cap stocks. Henceforth, it will be a stock-picker’s market.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Reuters
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