Worldwide economies are facing a shortage of liquidity. Midcap stocks are usually among the worst affected when liquidity dries up. However amongst the larger Asian economies, India has the lowest linkages with the global economy. Once the temporary turmoil subsides India will be quickest to recover. Commodity prices are now in a downswing and interest rates appear to have peaked. Hence two of the biggest risks to the Indian economy are subsiding. Further central banks worldwide are acting in concert to restore confidence and liquidity. Better regulation of the financial system is also being implemented. We expect these efforts to bear fruit in the longer term. We believe that the longer-term growth of Indian economy is still largely intact. We believe the current turmoil is providing a lot of investment opportunities for the Kotak Emerging fund and expect to significantly outperform over the longer term.