Smallcap mutual funds jump 10% in a month Is it a new rally or a trap

Analysts warn this surge may fade fast

Small-cap mutual funds have roared back with double-digit gains over the past month, outperforming mid and large caps. But experts caution the move looks like a sharp post-correction recovery, not a durable trend, citing stretched valuations and rising investor exuberance. They suggest disciplined SIPs for high-risk investors, while noting large caps may offer better risk-reward now.