Mid, small caps offer opportunities, but hold stocks for at least a year

As market pundits had predicted, the stock market rally has become broader after the Lok Sabha elections ushered in a stable government. And the positive sentiment seems to have rubbed off on retail investors as well. The renewed interest in the mid- and small-cap space clearly indicates that retail investors’ risk-taking ability is on the rise.

And it’s not just stocks, investors are putting in money in mutual funds as well. In May, net inflows into equity schemes rose 17 per cent to Rs 5,407 crore, and more than 50 per cent of this money — Rs 2,687 crore — went