Smallcap fund correction: Trim exposure if it exceeds 20%, avoid full exit
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar pointed out that high-beta funds gain more in rallies but fall harder in downturns. He said long-term investors should hold their smallcap positions, only those with near-term needs should exit, and new entrants need a horizon of at least seven years.
More of Abhishek's views on mutual funds
Business Standard reviews the sharp decline in smallcap funds and what investors should do. Fund managers and planners discuss valuations, global uncertainty and earnings, the longer-term case for the segment, and suggest that existing investors trim an overweight position while new equity investors start with less volatile categories.
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Smallcap fund correction: Trim exposure if it exceeds 20%, avoid full exit