Many mutual fund investors, especially the new entrants, are making a lot of enquiries about microcap schemes these days, say MF advisors. "Recently, my clients have started asking a lot about microcap funds. Earlier, they were interested more in midcap schemes," says Neeraj Chauhan, CEO, The Financial Mall.
MF Advisors say that the new entrants to mutual funds and the younger investors are obsessed with the eye-popping returns offered by microcap schemes in the last few years. The smallcap category has returned an eye-popping 40.48 per cent returns in the last one year and 36.49 per cent in three years.
