Talking about Kotak Small Cap, Pankaj Tibrewal, equity fund manager, Kotak Mahindra AMC, says sectors such as chemicals, home improvement (plywood, tiles, electrical wires and cables, etc), building material, consumer discretionary, select information technology and pharma have contributed to the fund’s performance over the last 12 months. The fund has invested in market leaders in each of these sectors.
R. Srinivasan, chief investment officer, equity, SBI MF, follows a sector-agnostic philosophy. “The sector weight is merely a derivative of stock-picking. We run a bottom-up philosophy of stock-picking.”
Should you start investing in small-cap funds after this outperformance? “Historically, these kinds of outperformances are followed by a period of consolidation or underperformance for some time before the next leg of outperformance kicks in,” says Nishant Batra, co-founder of Fincademy. Batra does not endorse lumpsum investment at this juncture. He suggests continuing with systematic investment plans provided small-caps fit into one’s asset allocation and suits one’s risk appetite.
