MF Investment: If you are worried about the decline in small-mid caps, then invest in these mutual funds!

This week was a declining one in the stock market. The market faced losses on all five days. However, some categories of the market like small cap and mid cap are already facing decline. During the last few weeks, there has been a huge decline in both these categories, due to which many investors of mutual funds have started facing problems.

This is how small and mid cap stocks have fallen

Market. Statistics show that during the last few weeks, more than 80 percent of the stocks in the small cap and mid cap category have seen a decline. Many of those stocks have fallen to 52-week lows and some to record lows. Naturally, the huge fall in these shares has also adversely affected the performance of those mutual funds investing in small and mid caps, which till some time ago were successful in giving the best returns to the investors.

Will not do dip buying in small-mid caps

Market experts believe that the continuous decline in these stocks should not be seen as a buying opportunity, rather investors should move away from this category and invest in their stocks. Investments should be shifted to more stable large cap mutual funds. Krishna Murari Gupta of KMG Wealth says – increasing tension in West Asia is negative for financial markets globally. However, large cap stocks are more resilient and recover faster, hence it is important to keep them in the portfolio.

Performance of large cap funds in the last one year

The performance of large cap funds has been excellent in the last few quarters. In the last one year, around 12 mutual funds in large caps have given returns of more than 40 per cent, while 15 other funds have given returns of 30 per cent or more to investors. Nippon India Large Cap Fund is at the forefront in giving returns, which has given a return of 46.66 percent in the last one year. Taurus Mutual Fund has given a return of 43.98 percent. Some other funds have also given returns of more than 40%.

For these reasons, large cap funds are a better option

Factors like purchasing from global funds, good valuations and low political risk make large caps We are increasing our purchases. For these reasons, large cap mutual funds have been successful in giving better returns. Mutual fund experts believe that investing in large caps almost always gives good returns. If times are challenging then they prove to be better, because large caps have a better risk-reward balance than small or mid caps.

Disclaimer: The information provided here is for information only. Is going. It is important to mention here that investment in markets/mutual funds is subject to market risks. As an investor, always consult an expert before investing money. ABPLive.com never advises anyone to invest any money.

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