Thanks for the post and discussions. I humbly want to share my experiences with different types of funds.If one takes the timeframe of 5 years, in most of the cases the small cap funds beat flexi cap and large cap with 2-3 percent at least. Only exceptions can be a particular fund going very bad or performing beyond expectations. I can suggest that the best way is stay invest in small cap funds (not in one fund),so that severe underperformance of one fund gets averaged out.Now market cycles have become smaller, so it doesn’t take more than five years.Even for PPFA, they suggest 7-8 years duration for good performance.Just to add a point,Motilal Oswal micro cap index fund (500-750) brochure mentions that on longer time scale micro cap index backtesting shows the return of 25%,although, it can be very volatile in the short run.As it is the single fund in that category we do not have other funds to compare.I hope honourable members will share their opinion in this regard.
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