A ride worth it

Buy three small cap funds and hang on to them for three-five years even though it could be a stomach-churning ride

A total of about 1,393 National Stock Exchange-listed stocks were traded on both February 14, 2018 and February 14, 2019. Out of these, 1,218 stocks, or 87 per cent of the sample, were trading lower in February 2019, year on year. About 25 per cent of those stocks were at six-year lows, trading below their 2014 prices.  

This is a classic bear market signal and it’s backed up by the returns from most of the stock indices. Year-on-year, the NSE Smallcap 100 is down 32 per cent, the NSE Midcap 100 is down 19 per cent and the Nifty Next 50