Massive inflows, especially in red hot markets, forces them to buy at high valuations, compromise on quality
Small-cap index still down 17% YTD, even as Nifty50, mid-cap indices back in green.
Small cap funds have come under the spotlight after it is offering just over 28 per cent returns in the last three years as the returns on these funds are the highest in the equity segment
Mid-and-small-caps indexes have outperformed their large-cap peers in July so far. So what is attracting investors to these two market segments, and will this outperformance last?
The mid-and small-cap indices on the BSE cracked over 3% last week. While the overall nervousness in the market is a reason for the poor show, analysts say the trend may soon reverse on the bourses
Stocks like Godrej Property can surge 15 per cent, where as Navin Fluoro can easily jump another 10 per cent provided it consecutively closes above Rs 4250
Tata Communications has broken the 200-day moving average (DMA) suggesting weakness in the coming days.
Avoid going overweight on these categories as they see sharper declines than large-cap funds during corrections
When selecting an index fund, pay attention to fee and tracking error
Move money out of smallcaps to large caps, even as concerns over lofty valuations and likely correction weigh
The Nifty IT index jumped 3 per cent and ended around record high levels of 32,245.
In a Q&A, Ashish Shanker says market moves will mirror the likely earnings growth of 12-15 per cent for the next few years
The recent correction in the mid-, small-cap stocks provides a good entry point in these counters, technical charts suggest. Buy now for the long term.
The asset manager says spotting the trend during various market cycles is the key for identifying opportunities
This is a contrast to last year, when mid- and small-cap IT companies traded at a P/E multiple of 13.3x at the end of March 2020
Among sectors, the metal index recorded robust performance with S&P BSE Metal and Nifty Metal indexes gaining 63 per cent in H1CY21
"Currently, there are no signs which indicate that we are moving into a crisis or a bear market," said Chandan
The overall sentiment towards broader market stocks has been favourable with the small-cap index closing in the green for four consecutive months
Now below 50%, compared with 75% a year ago
In 2013, amid the taper tantrum sell-off, it had dropped to just $1 billion, shows an analysis done by ICICI Securities