largecaps | Midcaps | smallcaps: ETMarkets Fund Manager Talk: Current rally has bridged valuation arbitrage between large and mid/smallcaps: LIC MF : vimarsana.com
"The recent rally in the market has led to strong inflows into midcap and smallcap funds. However, the valuation gap between largecap and midcap/smallcap stocks has narrowed. Investors looking to invest in midcap and smallcap funds should have a longer term view and manage their return expectations accordingly. Multicap funds, with balanced exposure across market caps, have the potential to deliver good risk-adjusted returns."