Retail investors flock to mid and smallcap mutual funds despite valuation concerns

August 5, 2025

Indian retail investors are actively investing in mid and smallcap mutual funds. They are attracted by the high returns these funds have provided. Over the past year, significant investments have flowed into these funds. Experts advise caution due to high valuations. They suggest a long-term investment approach. Financial advisors recommend limiting exposure to these funds within the overall portfolio.

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