Small-Cap Mutual Funds Outperform but Valuations Flash Caution Signals

Source: Arth Vani
Smallcap schemes delivered chart-topping returns over the past year, yet fund managers are raising cash and advising investors to temper return expectations.
- ▸Smallcap funds top return charts
- ▸Managers raise cash buffers
- ▸Valuations above historical averages
- ▸SIP route preferred over lumpsum
Smallcap schemes delivered chart-topping returns over the past year, yet fund managers are raising cash and advising investors to temper return expectations.
The development marks a significant shift in how Indian investors and institutions are positioning themselves for the coming quarters. Analysts tracking the sector note that liquidity, policy direction and global cues will remain the dominant themes. Retail participation has continued to deepen, with SIP inflows and demat account additions sustaining their multi-year uptrend.
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