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Investment News

The Economic Times

Investment / The Economic Times

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Multicap funds gain traction, but risk from small-cap exposure persists

Multicap funds are gaining traction as a comprehensive investment option, offering exposure to large, mid, and small-cap stocks. However, regulatory mandates requiring significant allocation to smaller stocks make them more susceptible to market volatility and deeper drawdowns during corrections, unlike more flexible categories.

8 Apr 2026 6:20 am