That mid-cap stocks will come under selling pressure during the periodic corrections in the market is a given. But, over the long term – and if chosen correctly – mid-cap stocks do deliver better returns. Investing in mid-cap stocks, however, requires a balanced approach – the ability to take risk, to manage the risk, and also have a long-term perspective. And to manage risk, use non-financial parameters. For instance, which company would you pick in the infrastructure space? One where the management has seen it all – from when infrastructure was the buzzword to when it was considered a bad word? Or a company whose management has seen only the good times of the last eight years? Probably the first one, because management experience has its own value and plays a big role in the long term.
