Largecaps will be easier to invest in and make decent returns over next 12-18 months: Sachin Shah

Sachin Shah, Fund Manager, Emkay Investment Managers, says midcaps and smallcaps will be very bottoms up, very company specific, where the earnings growth will have to be very solid, the tailwind over there may not be there, but it was there for the last two-three years as far as both from the investor's perspective and also from the ground level business perspective. So, largecaps will be relatively easy to invest and make some decent returns over the next 12 to 18 months.

The colours of Holi are on the screen, some bit of a green and some bit of a red. There is a Holi feel all around. But the question is when will the markets turn pink? Pink as in when will we get back to that pink of health for the markets? What is your current take on the markets and how are you navigating this volatility?
Sachin Shah: Clearly, we are seeing a decent amount of volatility in CY25. Even the last quarter of CY24 was not very great. And it is driven by the global headlines, global flows, and, of course, in the last few months also, it has to do something with the domestic economy. We have to understand that as equity investors, we have to be ready for a non-linear kind of market movements and this is also a phase because we have had some fantastic times in the last five years. Because even today, in the current financial year, the markets are more or less flat, but in spite of that, with that flat year also if you see the last two years, three years, five years, all the returns are in the range of 18%, 20%, 25%.

It is just a year