InvestorQ : Which are the good mutual funds - small cap for the current month?
Anjana Aiyar made post

Which are the good mutual funds - small cap for the current month?

Deepa Salunkhe answered.
3 years ago
There are people who are writing off the small-cap and mid-cap segment. While there are managers who believe that this could be the right time to invest in mid-cap and small-cap mutual fund schemes.

“We are bullish on small and mid-caps. There are many small and mid-caps which have become very attractive, even more than large caps. It makes sense to look at them”, says Neelesh Surana, CIO, Mirae Asset India. However, he also believes that there are apprehensions about the small-cap segment. One has to be more careful with small-cap due to liquidity risk. 

Though there has been a major downfall in the mid-cap and small-cap during this year, they should not be completely ignored. Small-cap companies have more potential to grow during this phase. The market is so huge that it has all sorts of funds, which needs the proper filter to find out the best in every segment. On the other hand, there are people who believe that investing in mid-cap and small-cap can be risky. 

Hence closely monitoring the market can actually help, no matter what segment you invest in, you need proper research to make it work during this phase.