With a sustained fall in Indian equities, most small-cap funds are showing negative returns on their one-year Systematic Investment Plans (SIPs) over the past six months.
This has left investors worried, as they have poured in close to Rs 35,000 crore into active small-cap funds in calendar year 2024, nearly double the net inflows into large-cap funds.
Speaking at IFA Galaxy 2025, an event organised by a Chennai-based mutual fund association, S Naren, Chief Investment Officer, ICICI Prudential Mutual Fund, advised caution regarding SIP investments in mid-cap and small-cap stocks. “We think it is a clear time to take out lock, stock, and barrel from small- and mid-caps,” he said.
