Expert View: Vikas Khemani shares pitfalls of global investing, says large-cap trade is overcrowded (opens original article in a new tab)

Vikas Khemani argues that Indian markets have strong long-term fundamentals and that global diversification is often misinterpreted as overexposure to US tech stocks, with better opportunities in undercovered mid-cap and small-cap sectors.

• Vikas Khemani highlights that Indian corporate earnings have compounded at 14-15% CAGR over 20-25 years, outperforming many major economies.
• He warns that global diversification often means overexposure to US tech stocks and highlights the structural advantages of India's diversified economy.
• Khemani suggests that mid-cap and small-cap sectors, especially manufacturing and BFSI, offer better opportunities than overvalued large-cap stocks.