Small-cap funds make comeback, but they are a volatile investment option

Only investors with appetite to handle their high volatility should enter them

Topics
small-caps investments | Investments

Sanjay Kumar Sing  |  New Delhi 

After disappointing investors with negative returns in 2018 and 2019, small-cap funds have made a strong comeback. They appear set to outperform both large- and mid-cap funds this calendar year.

What is driving the bounce-back? One, the category is catching up after a long spell of price and time correction since January 2018. Two, the economy is improving and liquidity flows into the market have been strong. “The small-cap segment tends to do well in such an environment," says Ashwin Patni, head-products and alternatives, Axis Asset Management Company. Fund ...

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First Published: Mon, December 07 2020. 21:01 IST
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