New Delhi, Aug. 28 -- As small-cap funds continue to attract strong investor inflows, sectors delivering high growth are unlikely to look inexpensive from a traditional value-investing perspective, according to Anupam Tiwari, head of equities at Groww AMC.

Valuations have climbed considerably over the past 12 to 18 months. Tiwari said investor interest in small caps was muted when Groww advocated the segment more than a year ago, but sentiment has since shifted significantly.

"The Q1 earnings numbers played a key role here. Retail behaviour often follows past performance. Just as we witnessed the recent rush into gold funds, investors are now moving aggressively into small caps because of their recent returns," Tiwari told Mint.

Howeve...