The Nifty Smallcap 250 has climbed to a fresh 52-week high putting small-cap stocks back in focus among equity mutual fund investors. The recent rally has also raised an important question for investors: should they continue investing through SIPs, increase their exposure to small-cap funds or become more cautious with fresh allocations after the sharp run-up?
While a new high can often make investors wary of profit booking, experts believe the index level alone should not determine investment decisions. Investors should instead look at their investment horizon, risk appetite, asset allocation and whether their small-cap exposure has moved significantly above the level originally planned.
