Suggest mid- or small-cap funds which I can invest in during this correction. I am well aware of risk involved.
— Gayatri Rao
We are glad that you are aware of the risk involved in investing in funds that pack their portfolios with smaller cap companies. However, you are implying that you chose to invest at one go, something we never recommend. You have no idea if the market is going to dip further or has bottomed out and will only rise from now on. Why don’t you consider a systematic investment plan (SIP)?
The funds that fall in the Mid & Small Cap category are a diverse bunch. DSP BlackRock Mutual Fund has two offerings — DSPBR Small & Mid Cap and DSPBR Micro Cap. There are two dividend yield funds which you can consider, BSL Dividend Yield Plus and ING Dividend Yield. ICICI Prudential Discovery is another good selection in this category but is a value fund.