Small, microcaps offer better alpha opportunities; midcaps look expensive: Equitree CIO Pawan Bharaddia

Pawan Bharaddia, the Chief Investment Officer at Equitree Capital Advisors, believes that small and microcap stocks in India offer better opportunities for investors to earn higher returns, known as alpha. This is because these smaller companies have more room for growth, and their valuations are relatively lower. In contrast, midcap stocks appear to be overvalued, making them less attractive for investors.

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India's domestic economy is resilient, but future returns depend on earnings growth. This could lead to a stable market with limited growth opportunities.

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