All 40 schemes in the small cap category delivered negative returns in one month period ending February 9.
Mid and small-cap mutual fund schemes have delivered negative 6 percent returns during in one-week period ended May 25 under performing the large cap fund category
Investment advisors caution against putting fresh money in small and mid-cap funds given their high valuations and also due to concerns over liquidity.
Over the same period, about 59 percent of the large-cap equity funds underperformed benchmark S&P BSE 100 index.
Midcaps have been the best performer for most part of the last two years. However, of late, they have emerged as volatile bets. This makes one rethink about this mid cap exposure.
Understanding the nuances of investing in mutual funds requires hard work and the returns take on a learning curve. With meticulous planning, the rewards from mutual funds will far outweigh the required efforts.
As per CRISIL Research's study, funds in the mid cap domain delivered not just better returns but were also less volatile as compare to its peer Large cap.