According to data sourced from primemfdatabase.com, as many as eleven small-cap schemes held 7 per cent of their asset base in cash at the end of June
Industry participants, however, say the run-up in market prices may not be enough to improve the sentiment of investors
One reason for this sound performance is that large-cap funds have done well over the past year and stocks in this segment have become expensive due to a lot of liquidity chasing them
Even as equity schemes saw investor flows dip to a multi-year low, large-cap schemes continue to find traction among investors
Build a diversified portfolio spread across market caps, instead of chasing only one category
The bull run in any asset class does not last forever, so investors need to be well diversified
A large proportion of passive funds has, however, beaten actively managed large-cap funds in the last one year