ETMarkets Smart Talk: If you are a long term investor then diversify to other asset classes like gold and debt: Vijay Kuppa

“The valuations in the midcaps and smallcaps are not yet very cheap. One must be very selective and have a bottom-up approach while investing in this space. The major trends that are likely to play out strongly for India are in the mid and smallcap space and hence they still have the maximum potential. FIIs are also increasing their stock coverage in this space, adding more depth to the markets. So, one should be cautiously optimistic.”