Multi-cap funds run the risk of missing out on the mid- and small-cap rally

Schemes have been raising exposure to large-caps, while staying light on mid- and small-caps

The multi-cap schemes, which have the flexibility to invest in stocks across a wide spectrum of market capitalisation, run the risk of missing out on the mid- and small-cap rally as they continue to stick with large-cap stocks. 

According to an analysis of the data from Value Research, large-cap exposure of multi-cap schemes has increased from 62 per cent at the end of 2017-18 (FY18) to more than 68 per cent at the end of January 2019. Meanwhile, exposure to mid-cap stocks has reduced from 21 per cent to 19 per cent; exposure to small-cap stocks has declined from 9.3 per