"Investing in mid and small cap segments may be a risky proposition given the elevated valuations. Therefore, from an investment perspective, one can look for names/ assets which are relatively cheap or fairly valued in this market," says S Naren, ED & CIO, ICICI Prudential AMC.
The small-cap segment offers lucrative investment opportunities but is prone to significant fluctuations and risks, necessitating strategic and cautious approaches for investors.
"Globally, inflation and elevated interest rates were a major cause of worry in 2023, but the worst seems to be behind us," says S Naren, ED & CIO, ICICI Prudential AMC.
As small cap funds tend to grow faster during a bull run, it is important to check the portfolio for risky stocks and consider reallocating towards large caps or debt funds.
We considered the large cap, large & mid cap, mid cap, small cap, flexi cap, multi cap, ELSS funds, contra, value, and focused funds for the analysis. We considered regular and growth schemes.