52%: Category average return of small-cap funds since their March 23 lows.
- Small-cap funds have given an average return of 52 per cent to investors from the lows that the markets had touched on March 23.
- Large-cap funds and mid-cap funds have both given returns of 46 per cent over this period.
- Mid- and small-cap funds have been underperforming since February 2018. Currently, they are more attractively valued than large-caps.
- However, investors must remember that an economic downturn generally hits smaller companies harder. Larger ones tend to be more resilient in such times.
- Investors need to stick to an asset allocation of, say, 70 per cent to large-caps, 20 per cent to mid-caps, and 10 per cent to small-caps (they may allocate more to large-caps and less to mid- and small-caps if they are very conservative, or vice versa).
A few links for further reading
Insecure and uncertain in insurance business as Covid-18 damage claims mount
Insurance companies around the world were sailing smoothly, helped by growth in emerging markets and strong capitalisation. Things changed in late February when markets realised that Covid-19’s impact on insurers could be significant. Insurers are yet to know the full impact of the crisis as governments and regulators nudge them to give moratoriums to policyholders and quickly settle claims too. India’s insurance regulator has set strict deadlines for medical insurers to settle Covid-19 claims. General insurers face damage claims from businesses devastated by the national lockdown to contain the disease. Is insurance secured to survive, Joydeep Ghosh explains
There was a time when pay cuts we see today were a complete no-no; govt and public sector jobs were considered safe, as pay and pensions were both assured. Not any longer, it seems, writes T N Ninan
Quick approval, grace period
The COVID-19 pandemic has brought home the significance of health and life insurance like nothing else earlier. Even those who were blasé about these covers in the past are now looking to buy a new policy or want to enhance the sum insured on their existing ones. Meanwhile, the Insurance Regulatory and Development Authority of India (IRDAI) has been issuing a slew of guidelines to health/general and life insurance companies aimed at easing matters for customers.