Smallcap mutual funds made strides in FY2024, reducing the AUM gap with largecap peers through notable growth. The data analysis highlighted the impressive performance of smallcap schemes in managing assets under management effectively.
“There could be volatility in the market in the coming few months and investors should not get unduly shocked by the higher volatility that small and midcaps will experience compared to largecaps. Distributors are now actively advising investors to move into flexicaps and multicaps as opposed to pure smallcap, mid cap schemes. It is a healthy sign that people are not just chasing past returns and are also looking to diversify across the caps.”