Small- and mid-cap meltdown: Difficult times call for a review of strategy

HNI investors experiencing pain in mid- and small-cap oriented PMS and AIF schemes need to review their funds, portfolios, and investment strategies

After a great run that lasted for four years (see table), mid- and small-cap stocks have witnessed a downturn in recent months. While the BSE Mid-cap Index is down 14.82 per cent year-to-date (YTD), the BSE Small-cap Index is down 17.76 per cent. Like retail investors in mutual funds, high net worth individuals, who have invested in Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), are also experiencing a lot of pain. To cite just one example, the return of Porinju Veliyath's Equity Intelligence PMS, which has given investors a compounded annual return of 31.33 per cent over the