Small caps continue to attract strong inflows. But can investors handle the volatility? What history reveals

· livemint.com

Small-cap funds continue to attract strong investor inflows, but historical data shows that sharp corrections are a regular part of the journey. FundsIndia data shows the Nifty Smallcap 100 has seen falls of more than 30% far more often than the Sensex.

Indian investors are continuing to put money into small-cap funds even as the equity market remains volatile. In August, small-cap mutual funds attracted ₹7,9...


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