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Good, but Risky Propositions

Here are 2 mid- & small-cap funds that are outstanding in their categories. Invest in them if you can stomach the volatility…

I’m looking to invest in a mid- to small-cap fund. Which is a better bet between HDFC Midcap Opportunities and DSP BlackRock Micro cap Reg?
-Pradya

Both of the funds chosen by you are risky propositions, because of the kind of stock universe they invest in. That apart, both are very different kinds of funds. DSP BlackRock Microcap invests in companies which are not part of the top 300 capitalised companies in the country. So, by design, it’s not necessarily the real basement of stocks by capitalisation, but surely not large-caps. On the other hand, HDFC Midcap Opportunities is a very promising mid-cap fund. Hence, while both funds are good, they are risky as well. But if you have the patience, you can invest in both of them because they are outstanding funds in their own categories.



This article was originally published on July 04, 2012.

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