The rally in small-cap (and mid-cap) stocks, which began in August 2013, has rewarded mutual fund investors handsomely. Over the past three years, small-cap funds have delivered average annualised return of 36.46 per cent, two-and-a-half times the return from large-cap funds (annualised average return 15.45 per cent), according to Value Research. However, with net asset values of many small-cap funds trading at or near all-time highs, investors should approach the category with caution. The primary reason investors should have some exposure to small-cap funds is that stocks in this ...
Explained: Why holding mutual fund units in demat form makes sense
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