Election hurdle for sentiment

Any downturn is an opportunity to build a multi-cap portfolio

The conventional wisdom is that largecaps are less ‘risky’ even though they give lower returns than smallcaps/midcaps. Most direct investors accept the risk and look for smallcaps/midcaps in the hopes of earning higher returns. Aggressive active funds also seek multicap exposure for the same reasons.
 
In the Indian context, we can compare the Nifty, which tracks only largecaps, to the NSE 500, which offers broad multi-cap coverage including many midcaps and some smallcaps.  The Nifty has a 10-year compounded annual growth rate (CAGR) of 9.5 per cent since July 2008, and it has returned 6.8 per cent in the