Expect a 12-15% CAGR in next 3 years; more inclined towards midcaps than indices: Madhu Kela

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In the next three years, there could be 12-15 percent compounded gains in the market, said market veteran Madhu Kela in a chat with CNBC TV18.

Kela said that he prefers midcaps than indices at this juncture as it is more about the quality and cheaper stocks than sectors.

Kela said the pharma sector looks positive and continues to remain bullish on it.

Due to prolonged weakness in the economy, the market has suffered strong losses but the economy is likely to improve gradually, he added

"Should see the economy on a better footing in the coming six months than what it is at currently. The recovery in the economy is going to be slow but steady," Kela said.

"Not all stocks will come back immediately. But the market will reconcile," he added.

Taking about the governance issues in the corporate sector, he said it requires solid and established guidelines in case of whistleblower complaints.

Kela also underscored the importance of Gold in one's portfolio.

"There should be some allocation in gold as well to mitigate the losses if anything goes wrong in the equities," Kela said.