Mid-cap investing has its own set of challenges. We speak with Aniruddha Naha IV Lof PGIM India Mutual Fund about them and about how he manages PGIM India Midcap Opportunities Fund. This fund has been rated five stars by Value Research and is among one of the best performers over the last one year.

The markets have fallen over the last couple of months due to an anticipated rise in interest rates and the Russia-Ukraine tension. What's your short- to medium-term view on the markets?

In our view, the near term could continue to be volatile due to the above-mentioned monetary and geopolitical uncertainties. The inflationary pressures due to rising commodity prices would test the current account deficit, inflation and also the resilience of the currency. The world is also experiencing protectionism and barriers to free trade after a long time, which would pose their own set of challenges. Over the longer period, India has undertaken some structural changes which should augur very well for corporates. Lower corporate taxes, implementation of GST and generally a clean balance sheet, with low debt levels, should bode well for corporate India's profitability over the medium to long term.

How do you pick stocks for your Midcap Opportunities Fund? When do you exit a stock?