Small Cap & Mid Cap Funds: Mid-cap, small-cap indices have gained by 34% and 61% in 1 year: How retail investors should invest in these sectors

The Indian stock market is heating up again, taking benchmark indices close to their all-time highs. However, the real action is happening in the mid- and small-cap space. For instance, the BSE mid-cap and small-cap indices have gained by 34% and 61% respectively over the past year, compared to the Sensex’s modest 23% gain. The two-year returns also tell a similar story. Absolute gains of 68% and 113% respectively for BSE Midcap Index and BSE