 "equity market, smallcap, largecap")
Smallcap funds have declined 21.6 per cent over the past three months. Many investors, who were highly bullish on this segment during the bull run of 2023 and 2024, are a shaken lot today. They must adopt the mantras of asset allocation and long-term investing to weather this phase.
Volatility may continue in short term
The inflated valuations of smallcap stocks are getting corrected. “After Covid, small and midcap companies experienced faster growth than large caps, leading to significant rerating. The decline over the past six months reflects a reversal of this rerating,” says Shreyas Devalkar, head-equity, Axis Mutual Fund.
