The midcap and smallcap stocks have good potential over the longer term to outperform, said Vinit Sambre, Head of Equities, DSP Investment Managers.

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"If there are any intermittent short-term underperformances, that should be taken in stride and for long-term investors, it becomes an opportunity to keep adding,” said Sambre in an interview with CNBC-TV18.

“Broadly one needs to focus on the segments or sectors which probably will eventually add value over a period of time where we will see growth both across the largecaps and midcaps,” he said.

Across the funds which the asset management company is managing, it is looking for investment into companies and businesses which can deliver returns over a longer period of time, according to Sambre. "Hence it is possible that during the short cycles, at certain points, the midcaps outperform the largecaps and may take a breather for a while and the money may shift to largecaps or multicaps,” he said.

According to him, the asset allocation needs to be more aligned to the risk profile of the investors.

“Over the longer term, we continue to remain bullish about the investing companies which we own across our funds,” Sambre said.

In terms of banking sector, he said, “We clearly like to own banks where we have comfort on the asset quality track record and not merely go by the short-term growth trajectory which the banks have been showcasing. We remain invested in the banks where the long-term track record of their asset quality has been good.”

Sambre is positive on the agri sector. “We have a lot of the agri commodity plays and we also have some of these specialty chemicals to play the whole cyclical upturn.”

For the entire discussion, watch video...

(Edited by : Niral Sharma)

First Published:Dec 10, 2020 1:27 PM IST