Small-cap stocks, Feb. 17 -- Nearly half of the small-cap universe is currently trading well below its historical highs, offering investors a potential opportunity to make calibrated long-term allocations, according to a recent study by Abakkus Mutual Fund.

The research highlighted that nearly 50% of small-cap stocks, with market capitalisation ranging between Rs.2,000 crore and Rs.34,700 crore, are trading around 40% below their all-time highs following recent market corrections.

Just in 2026 YTD, Nifty Smallcap index has lost over 3% as against a 1.4% decline in the benchmark Nifty 50. Over three-year and five-year horizons, the small-cap index also outperformed, recording 21% and 22% CAGR, respectively, versus 13% for the Nifty 50 du...