With more than 70% of all stocks in the red since the start of 2018, most mid-cap and small-cap equity schemes have posted poor returns. For instance, between January and August, just seven of 21 mid-cap schemes had outperformed their category average while most small-cap schemes posted negative returns.
A study by FE shows close to three-fourths of all stocks with a market capitalisation of Rs 1,000 crore or more have lost value since January. The poor market sentiment has clearly affected flows into equity schemes with August reporting the smallest inflows in 18 months at Rs 5,923 crore.
