Mid/Smallcap Funds: Karkera explains performance gaps

• Nirav Karkera of Fisdom explains the wide performance divergence in mid- and smallcap funds due to varying strategies and market cycles.
• Invesco India Mid Cap Fund outperformed with 14% 1-year returns by strictly adhering to midcap investments and using a bottom-up stock-picking approach.
• Motilal Oswal Midcap Fund underperformed this year due to its concentrated strategy and headwinds in themes like premium consumption and midcap IT.
• Invesco Small Cap Fund consistently outperformed through deep research, diversified bottom-up stock selection, and focus on valuation and earnings visibility.
• DSP Nifty Small Cap Quality 50 Index Fund is down 12% as its passive, rule-based quality factor strategy lacks flexibility and the quality theme hasn't performed broadly.

Why It Matters: Explains why mid/smallcap funds vary, guiding investor choices.