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Small caps are rallying again. Should you get on board or stay away?

Small cap mutual funds are drawing record inflows, driven by attractive valuations and a broader economic recovery. But investors still need a five-to-seven-year horizon and an SIP mindset to beat the volatility.

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Small caps are rallying again. Should you get on board or stay away?

Small cap mutual funds are drawing record inflows, driven by attractive valuations and a broader economic recovery. But investors still need a five-to-seven-year horizon and an SIP mindset to beat the volatility.

Small cap funds also have a strong long-term record when measured against their benchmark. About 92.3% of active small cap funds have beaten the Nifty Smallcap 250 TRI over the past 10 years, 81.8% o…

Originally published by Livemint. Read the full article →

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