Small-cap fund is one category where liquidity is poor and is riskier compared to large-cap and mid-cap funds. Yet, small-cap mutual funds have been among the most popular schemes of late.
In fact, in the last three years, these schemes got net inflows of nearly Rs 40,000 crore. Compared to this large-cap fund flows have been at a trickle, at Rs 4,700 crore.