Small- and mid-caps have a large alpha over large-caps and valuations remain elevated, with most segments still appearing expensive relative to historical norm. This is the reason why investors might be better served by focusing on large caps as an option, a report by DSP Mutual Fund said.
Market capitalisation to GDP ratio for small- and mid-caps remains elevated. This ratio peaked at 64 per cent in September 2024 and is currently slightly over 50 per cent with its long period average at 27 per cent.
