Pick small-caps with growth opportunity
The fact that mutual fund managers are willing to accept fresh flows after a while indicates that investment opportunities are emerging again. That they are still curbing the amount through systematic investment plans (SIP) indicates that some caution is still required. We observe that there is far greater differentiation among mid-cap and small-cap funds as against large-cap funds. This is because the number of listed companies in this space is far more, leaving fund managers with greater choice. Their relative skill is more on display here.