Mid cap and small cap stocks have been rallying since the beginning of 2020. In the last 15 days, mid cap and small cap indices have gained between 3-5%, as soaring valuations in large cap stocks along with ample liquidity started chasing quality stocks in these segments. Riding on the wave, even the mid cap and small cap mutual funds, which were beaten down badly in the last two years, started inching up once again in the last few months. The small cap mutual fund category has returned 7.78% in one month and 4.40% in one week. Similarly, the mid cap mutual fund category has offered 5.00% in one month and 3.83% in one week. Is the revival finally here? In other words, is it time to invest in these schemes?
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