Do Large Cap Funds Make More Sense in An Overheated Equity Market?

In recent times, as you may know, Indian equities have scaled new highs. Lured by the returns generated by Indian equities since COVID-19, more and more investors have participated.

The fascination of investors, particularly for mid and smallcaps, is palpable and doesn’t seem to be waning even at a lifetime high.

In the calendar year 2023, the S&P BSE Mid Cap Index Total Return Index (TRI) and the S&P BSE Small Cap Index Total Return Index (TRI), have of course clocked stellar double-digit returns and are continuing to ascend further.

But the question is whether skewing your portfolio to smaller companies really makes sense in the current market conditions.