New Delhi, June 16 -- Global diversification has become the buzzword for investors as India has lagged global peers in the recent past. However, this entire conversation is being driven by one data point: trailing 12-month returns, says Vikas Khemani, Founder and CIO at Carnelian Asset Management & Advisors.

He adds, "What investors are missing is that Indian corporate earnings have compounded at a CAGR of 14-15% over the last 20-25 years, a track record few major economies can match. Over 10 and 20 years, India is the most consistent performer in the EM peer group."

Commenting on investment themes, Khemani says there is genuine opportunity in less-covered mid-cap and select small-cap businesses where the gap between fundamentals and re...