Should you stay invested in small caps?

livemint.com:

get rid of poor-quality stocks in your portfolio. Another important question is whether you should continue to add to your small cap allocation either via stock purchases, or mutual fund lumpsums/SIPs.

Based on what you have read here, and perhaps other inputs you may have, that’s a decision you will need to make. As I said at the start, my purpose here is to “show" how one could consider allocating funds at various stages of the market.

This is not some heavy-duty, number-crunching study. My limited aim was to try and show a pattern that could perhaps repeat in the future.

I hope there is enough for you to consider reviewing how you allocate your money between small caps, mid caps and large caps. Happy rational investing to you.

Rahul Goel is the former CEO of Equitymaster. You can tweet him @rahulgoel477. You should always consult your personal investment advisor/wealth manager before making any decisions.