Fully invested? It makes sense to have some cash, invest in a phased manner: Sandip Sabharwal

economictimes.indiatimes.com:

Sandip Sabharwal, asksandipsabharwal.com, says “the way the entire midcap index has moved, speculative stocks have moved more than the sort of established companies, etc so there is definitely froth. We need to be careful what we are buying. There are still opportunities in the midcap, smallcap segment where these companies might do well over the next two, three years.”

Let us talk about sugar, the sweetest pocket in the market right now. Since you monitor the sector very closely, is it time to add positions further or would you say wait for a dip perhaps?
Sugar has been one sector which has not performed despite a lot of things going well for them, both in terms of the weather disruptions in India and globally, which is going to cut this year's production growth. In some countries, we might actually see declines. We see global sugar prices at multi-year highs.

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The concern among the minds of investors has been what happens to the state-advised price of sugarcane in an election year where political compulsions might lead the government to increase it more and that would hurt these companies at a time when Indian domestic prices have increased but they have increased moderately as compared to what is happening globally. But that said, the sector is reasonably well-placed. I would think that it should perform and there should be at least 20-30% upside across the board in the sugar sector because it has not participated at all in the entire mid-cap rally.

What is your take on