The uninterrupted flow of money into mid-and small-cap mutual funds is forcing various fund managers to add more stocks to their portfolios, an investment model that could put a lid on the extent of their outperformance over a longer period.
Investment advisors said schemes that bet on smaller shares have been able to give outsized returns in the last couple of years partly because of a tighter share portfolio in a raging bull market. The concern is that a wider section of stocks could weigh on the performance of these schemes.
