New Delhi, Oct. 6 -- Small-cap indices have significantly outperformed large caps over the past year, leaving investors to decide whether to continue their systematic investment plans (SIPs) or redirect fresh investments towards large-cap funds.

While historical data suggests that periods of sharp small-cap outperformance can be followed by mean reversion, experts say investors should not change their investment strategy solely because of recent market movements.

The more important question for SIP investors is whether their portfolios have drifted from their intended asset allocation. Strong returns can increase the share of small- and mid-cap funds in a portfolio, making rebalancing necessary even if investors have not changed their m...