Large-cap Logic Remains Strong

If you were to look at the short-term performance of various category of equity mutual funds on ValueResearchOnline.com right now, you could be forgiven for assuming that there was a mistake. The normal pattern that is followed when the markets decline stands completely reversed. Large-cap funds have the worst performance, large and mid-caps come next, and mid- and small caps have the best (or rather, least worst performance). To be precise, Large-caps have declined by 17.7 per cent over the last six months, Large- and mid-caps by 15.9 per cent, Multi-caps by 15.6 per cent, and Mid- and small-caps by just 11.9 per cent. This is precisely the reverse of what is normal in market declines and stands the logic of large-cap investments on its head. The whole point of inves

This article was originally published on October 10, 2011.