Mid and smallcaps carve out a bigger slice of mutual fund portfolio pie

Flexicap, ELSS, and multicap schemes have piled on more mid and smallcap flavour since March

The midcap and smallcap exposure of diversified equity schemes has increased over the past few months, despite concerns of overvaluation in these sectors.

In the past six months, the largecap exposure of the equity-linked savings scheme (ELSS) has decreased from 73 per cent to 69 per cent, according to data from PRIME Database. Simultaneously, the average midcap and smallcap allocations have increased by a couple of percentage points each. A similar trend is noticeable in flexicap and multicap funds as well.

These six months have been characterised by significant outperformance in midcap and smallcap stocks compared to largecaps.

The National