Which are the midcap and smallcap funds that look good for 2024? Nirav Karkera answers

economictimes.indiatimes.com:

Nirav Karkera, Head of Research, Fisdom, says: “I am not quite sure if 2024-25 will actually turn out to be the year of passives per se but definitely largecaps are expected to make a comeback. But at the same time, it is not expected to make a comeback at the cost of small and midcaps. So, there are a few good things that have been going in favour of small- and midcaps as a segment and we expect a lot of this to be carried forward into the New Year as well.”
Before I ask you how you think midcap and smallcaps would be faring in 2024, let's just analyze the performance in 2023 where we have seen Nifty Small-Cap growing beyond 40%, Nifty Mid-Cap close to 38%, beating Nifty-50. Also, midcap and smallcap funds have given returns beyond 35%. It has been said that 2024 and 2025 are going to be years of passive funds and specifically focusing on large cap category. But then what is going to be the trajectory of midcaps and smallcaps going ahead? Nirav Karkera: Definitely one thing that is very clear that largecaps are once again gaining a lot of investor favour and investor interest and this comes on the back of a very stellar run-up in the mid- and smallcap segments. In fact, the run-up has been so good that it has pushed many investors to the edge of their seats, worried about what lies ahead after such a rally. Does it fizzle out from here or what is it that can keep the rally sustaining going ahead?

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So a very quick side note on largecaps; definitely the valuations are looking