Mid- and small-cap funds outperform large-caps in three months to Aug 19

Since March 23 market lows, small-cap funds have given nearly 52% returns

Small- and mid-cap funds have started to outperform large-caps, providing some relief to mutual fund (MF) investors who were holding onto their investments despite the prolonged period of underperformance.

Over a three-month period, small-cap funds are up 37.9 per cent, while mid-cap funds fetched returns of 29.9 per cent, showed data from Value Research. In this period, large-cap funds yielded gains of 26.3 per cent.

Advisors say investors can consider making fresh allocations to mid- and small-cap funds despite the recent uptick in returns.

“From a valuations point of view, the mid- and small-caps are lucratively placed, compared to large-caps. Even after the