The small-cap segment offers lucrative investment opportunities but is prone to significant fluctuations and risks, necessitating strategic and cautious approaches for investors.
Financial experts emphasize the high-risk, high-reward nature of small-cap stocks, advocating thorough research and quality assessments for potential investment.
There are multiple reasons why midcap and small-cap funds are trailing their benchmarks. For many mid-cap funds, it is the large-cap exposure that has put a lid on returns. Most mid-cap funds typically retain 10-20% exposure to large caps to maintain portfolio liquidity and hygiene.
There are multiple reasons why mid cap and small cap funds are trailing their benchmarks. For many mid cap funds, it is the large cap exposure that has put a lid on returns. Most mid cap funds typically retain 10-20% exposure to large caps to maintain portfolio liquidity and hygiene.