Mutual funds focussed on investing in mid- and small-cap stocks are raking it in.
With small-cap funds averaging returns of 37 per cent in 2016-17, their assets under management (AUMs) surged over 70 per cent in this period, according to latest data.
Mid/small-caps sprint
While the bellwether BSE Sensex managed to move up 17 per cent in 2016-17, the BSE SmallCap Index and MidCap index sprinted by 35-36 per cent. With mid- and small-cap stocks being market favourites since the 2014 rally, the asset base of many funds, which invest in these stocks, has increased manifold in the last three years (see table).
