Four mistakes investors might have made in 2023 & should avoid in 2024

So such a large proportion of new flows that are going into mid and smallcaps is a little bit of worry and probably a mistake..

It will continue over the long-term where mid and small caps are great sort of wealth creators, but remember, we have seen periods in time, and I will just take it back to not more than five, six years ago. 2017 was a classic case where you had the sharp run-up in mid- and small-caps, and in fact, especially on the midcap side, where it kind of hit new highs...

That is where the investors need to be very, very careful that what is ideally most investors are probably best served by just buying diversified equity funds because the fund manager who is paid to do that job will take more graded overweight, underweight calls, depending on his or her conviction on a particular sector, with all the research and the fundamental calls that they are taking, they would take graded calls, right..

For existing investors who already got good portfolios that are running and that is also a very important thing to keep in mind, is that if one particular asset class, like equities, ran up quite significantly in the last couple of years, if it has become over allocated in the portfolio, purely because of market movement, now is a good time as any to reduce that exposure back to where you thought your original level should have been...

And what we saw from investors, and this is a mistake which often happens in these kinds of markets, is so in 2018, 2019 and 2020 when growth did well and value was underperforming, after this period of 2020 because again, looking at past performance, investors started piling into growth style funds...

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