Asset reallocation: As Sensex hits all-time high, should investors reallocate money to mid- and small-cap stocks?

Mumbai: Investors could lock in a portion of their profits in large cap funds and reallocate the proceeds to a mix of mid and small cap funds, said financial advisors. With the Sensex and Nifty at all-time highs, mid- and small-cap shares appear better poised to outperform. “Investors skipped allocation to mid and small cap funds, as they were fearful of slow economic growth during the pandemic. However with large cap valuations at a peak, they