ICICI Prudential Discovery is classified as mid- and small-cap fund; however the fund’s benchmark is S&P CNX Nifty. Is not the classification contrary to the benchmark?
– Deepak Jain
An equity mutual fund selects a benchmark which it believes closely resembles its investment style and returns. This helps investors compare the scheme's performance with that of the benchmark index. At Value Research, we classify funds into various capitalisation ranges based on their portfolios, which in turn decides its market cap.