Take SIP route to mid and small-cap funds; avoid lump sum investments

The key reason fund houses had imposed restrictions on inflows was high valuations

Investors in mid-and small-cap stocks and funds have had a torrid time. And it’s primarily because of the high valuations that these stocks reached in 2017, and the subsequent fall. Year-to-date, the S&P BSE Midcap Index is down 10.19 per cent while the BSE Small-Cap Index is down 14.26 per cent. Some stocks within these segments have seen higher correction than the benchmark indices.

However, to use the clichéd phrase, there seems to be ‘cautious optimism’ from some fund managers. And it is largely because of the outperformance of the large-cap stocks. Says Jyotivardhan Jaipuria, founder and managing director, Valentis