Mid caps looking attractive

With a bull run predominantly dominated by the blue chip stocks last year, may be there is something brewing in the mid-cap market.

"In the past year, apart from the last two months, the mid-cap stocks had significantly underperformed the large-caps. When the Sensex rallied from 12,500 to 14,000 levels, the major Sensex companies were trading at 14-18 times their one-year forward earnings, but the mid-caps were largely under-valued, trading at seven-eight times one-year forward earnings, and did not participate in the rally,"

Mid-cap stocks come with a capacity to generate higher returns but with a similar risk attached to them.

Remember the returns from stocks like unitech??

Those who are ready for a long haul can greatly benefit from investing in mid-caps.

Business line on Mid-caps