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Should You Stop Small-Cap SIPs? Check Portfolio Allocation, Says ICICI Prudential MF Expert
- •Chintan Haria of ICICI Prudential MF advises investors to assess their overall portfolio's exposure to mid and small caps before stopping small-cap SIPs.
- •He suggests checking if combined mid and small-cap investments exceed 30-35% of the total portfolio.
- •The Nifty Smallcap 100 has seen a significant year-to-date return of over 12%, while the Nifty 50 is down by approximately 10.27%.
- •If mid and small-cap allocation is significantly higher than 30-35%, investors might consider rebalancing their portfolio.
- •The 30-35% figure is a suggested watch level, not a universal rule, and focuses on combined mid and small-cap exposure, not just small caps.
Key Questions Answered
Chintan Haria of ICICI Prudential AMC suggests that investors watch a combined mid and small-cap exposure level of around 30 to 35 percent of their overall portfolio. If an investor's allocation has moved substantially above this threshold due to recent market runs, they should consider rebalancing rather than looking at a small-cap SIP in isolation.
According to AMFI data, small-cap funds received net inflows of Rs 7,973.33 crore in August 2026, which was the highest among major equity-fund categories. Meanwhile, mid-cap funds attracted another Rs 6,989.40 crore during the same month. Together, these two segments pulled in nearly Rs 15,000 crore, making up about 51 percent of total equity-fund inflows.
As of August-end, the Nifty 50 was trading at a price-to-earnings ratio of roughly 20x, while the Nifty Smallcap 100 stood at 31.6x. The Nifty Smallcap 100 index delivered a year-to-date return of over 12 percent, whereas the Nifty 50 was down by approximately 10.27 percent.
