Helios India's Deviprasad Nair: Active Mid-Caps Offer Enduring Value

• Mid-caps provide fertile ground for active stock selection, balancing growth headroom with stability, often outperforming large and small caps long-term.
• SEBI's 65% allocation rule for mid-cap funds still allows outperformance through careful stock selection within the 101-250 market cap universe.
• The remaining 35% allocation offers flexibility for portfolio positioning across market cycles, including emerging small caps or selective large-cap exposure.
• Deeper research processes help active managers identify durable businesses and avoid structural losers, creating alpha despite broader analyst coverage.
• Recent mid-cap underperformance is a valuation reset, not structural weakness; long-term data shows consistent outperformance over Nifty 50 and Nifty 500.

Why It Matters: Active mid-cap funds offer strong long-term growth and outperformance, driven by unique market position.