Maintain 30% allocation in mid-caps: Mirae Asset Mutual Fund CIO

Mid-caps are now at a good discount to the Nifty, as well as their historic long-term averages, says CIO Neelesh Surana

Mid-caps are at a good discount to the Nifty, and their historic long-term averages, says Neelesh Surana, chief investment officer (CIO), Mirae Asset Mutual Fund. In an interview to Ashley Coutinho, he says investors can maintain an allocation of 25-30 per cent in mid-cap funds. Edited excerpts:

What is your outlook for the market for the year ahead? 

Short-term volatility is driven by event-based noises and is difficult to predict. The fundamental of India’s long-term structural growth drivers are intact. Also, broader market valuations are reasonable across size, quality, and sectoral parameters. At a forward PE multiple of 19x, the markets are