According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks. Small companies go through many ups and downs - more than the established companies in the large and mid cap segments.
The postponement of rate cuts has placed the markets emphasis on earnings growth. What is comforting is that the rate cuts have been pushed back in the backdrop of resilient global economic growth, says R. Janakiraman of Franklin Templeton.
Aruna is now convinced that she wants to invest in equity mutual funds in a systematic manner. However, she does not know how to select funds to create her investment portfolio.