Multi-Cap Funds: All-Weather Wealth Strategy?

Multi-Cap Funds: All-Weather Wealth Strategy?

During 2022, Indian equities faced several global headwinds, including rising interest rates, fears of a global recession, Russia-Ukraine war-related supply chain disruptions and a sharp correction in technology stocks. Although Indian benchmarks recovered strongly in the second half of the year and outperformed many global peers, the weakness in growth oriented stocks made investors more cautious. Experiencing such volatility, many investors preferred the perceived stability of large-cap and passive index funds, while exposure to mid- and small-cap stocks was viewed as relatively risky.

During 2022, Indian equities faced several global headwinds, including rising interest rates, fears of a global recession, Russia-Ukraine war-related supply chain disruptions and a sharp correction in technology stocks. Although Indian benchmarks recovered strongly in the second half of the year and outperformed many global peers, the weakness in growth oriented stocks made investors more cautious. Experiencing such volatility, many investors preferred the perceived stability of large-cap and passive index funds, while exposure to mid- and small-cap stocks was viewed as relatively risky. 

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