In December 2017, two different equity mutual fund schemes, investing in mid- and small-cap stocks, almost simultaneously restricted daily inflows, citing limited investment opportunities at current prices. Their decision to do so received validation in January 2018 with another asset manager deciding to return investor money from two small cap-oriented schemes (these were portfolio management schemes).
Given that both the mid- and small-cap indices have corrected slightly over 10% since the end of January 2018, shows that there was merit in the analysis that valuations in these segments had run too far ahead.