Smallcap Gems - Top Funds Bet on Hidden Treasures Despite Frothy Valuations

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Smallcap funds continue to find value despite high market valuations. Top smallcap funds like Axis Small Cap, Quant Small Cap and IDFC Small Cap have added several new stocks in April.

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Axis Small Cap Fund added stocks like KPIT Tech, Yes Bank, Puravankara, Sharda Cropchem and Indostar Capital.

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Quant Small Cap Fund bought shares of Rupa, Birlasoft, Radico Khaitan, Mphasis and Apollo Tyres.

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IDFC Small Cap Fund purchased stocks including Bajaj Electricals, Abbott India, Jubilant Ingrevia, CG Power and Indigo Paints.

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Fund managers believe smallcap universe has opportunities despite rich valuations in the broader market. Stocks bought have reasonable valuations and growth potential.

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Smallcap funds follow bottom-up approach, identifying companies with improving financials, market share gains and robust growth outlook.

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Investors can consider smallcap funds to tap into potential of smaller companies. But higher risk calls for sizing exposure as per risk profile.

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