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Where to invest lumpsum in volatile markets? Expert views on large, mid and small-caps
M
Moneycontrol•14-10-2026, 07:36
Where to invest lumpsum in volatile markets? Expert views on large, mid and small-caps
- •Market volatility makes investing a lumpsum tricky, with experts divided on whether to choose large, mid, or small-cap mutual funds.
- •Some experts favour small-caps for long-term growth, while others prefer large-caps due to more attractive valuations following recent corrections.
- •Diversified options like flexi-cap, multi-cap, and multi-asset funds are recommended by professionals to reduce concentration risk.
- •Experts suggest staggering lumpsum investments over three to six months or using a systematic transfer plan instead of deploying everything at once.
Key Questions Answered
Sandeep Bagla, CEO of TRUST Mutual Fund, believes small-cap funds offer substantial long-term growth potential for investors capable of staying invested through market fluctuations due to emerging sectors and newer business models.
Ajay Kumar Yadav notes that the Nifty 50 trades at a trailing P/E of 19.1 times, which is significantly lower than the 28.1 times for the Nifty Midcap 150 and 34.4 times for the Nifty Smallcap 250 as of October 12.
Experts suggest avoiding a single-day 100% deployment; instead, investors can immediately allocate about 40 percent and stagger the remaining 60 percent over three to six months, or utilize a systematic transfer plan.
