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Mutual fund, SIP investment: Large-cap vs small-cap — Where to invest new money this Diwali, Dhanteras? Experts views
Mint 1 hr ago·22 Oct 2026, 10:35 am
As the festive season approaches, investors are weighing where to allocate fresh capital. Large-cap funds are currently favored by experts for their relatively attractive valuations, offering a sense of stability. Conversely, small-cap funds continue to lead in historical returns and recent inflows, appealing to those seeking higher growth potential despite higher volatility. The decision ultimately depends on an investor's specific risk appetite and time horizon.
For those planning to invest via SIPs during Dhanteras, diversification is key. A balanced approach often involves maintaining a core portfolio in large-cap funds for steady growth while allocating a portion to small-cap funds to chase higher returns. Investors should carefully review their existing asset allocation to ensure it aligns with their long-term financial goals before making any new commitments.
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