Should you cut your losses in small and midcaps or ride out the storm? Vinit Sambre answers

economictimes.indiatimes.com:

«So, frankly, the inflows as far as the funds are concerned have not really got affected, maybe some marginal changes which one cannot call it a trend as of now, that is number one,» says Vinit Sambre, DSP Mutual Fund.

The time to panic in small and midcap stocks is it over or you can still churn your portfolio out of small and midcap stocks? I mean, everyone saw this coming, it is just that when it hits you, you regret.
Vinit Sambre: See, basically, first of all small and midcaps in general as I have been telling that these are categories which had to be looked from a long-term perspective and last three-four years were very strong for across the equities and it is time for some reversal as of now and when I actually think about a lot of the factors which we keep monitoring, the most important factor comes about is the growth in the earnings and this is the first time after a few years we are seeing moderation, cuts have happened, more importantly results are actually reflecting what is happening as far as earnings are concerned which was not happening over the last three years.

So, to some extent this should be considered as a good healthy kind of a correction linked to how the fundamentals are changing. Now, what you mentioned whether one should panic or not panic, I would say that large part of the returns which came about over the course of last three years were also a factor of liquidity and new investors coming in and I believe that while we have seen cuts to some extent linked to the fundamentals, but cuts