Mutual fund houses are now meant to disclose every month the level of liquidity their small and mid-cap schemes enjoy by carrying out what is known as ‘stress test’. These directions were issued by the Association of Mutual Funds in India (AMFI) in the wake of noticeable froth in the mid and small cap stocks.
If you are a mutual fund investor with a higher risk appetite then the chances are that you have invested a chunk of your portfolio in the mid-cap mutual funds. The year 2023 that has just culminated has delivered a considerably high return across sectors and market capitalisations. BSE Sensex gave over 18 percent return
Any wealth manager worth their salt would tell you that the large cap funds are the safest investment followed by mid-cap, and the small caps are among the most volatile, offering unpredictable returns. But when it comes to returns, small and mid-cap can outpace their larger peers, although for a short duration. In the year