The Economic Times

Smallcap mutual funds lead rally with 10% gains in 1 month. A short-term bounce or start of a sustained rally?

Small-cap mutual funds have surged, delivering double-digit returns in the past month, outperforming mid and large caps. Experts caution this is a sharp recovery post-correction, not a sustained rally, with high valuations and investor greed posing risks. Long-term investors with a high-risk appetite might consider SIPs, but large caps currently offer better risk-reward.