Allocation to mid & small cap funds!

In years 2023 & 2024 there has seen massive fund flows into mid-cap & small-cap funds by domestic investors via SIP or direct route. In trying to chase alpha the retail investors are ignoring fundamentals. This is not the right approach. One should invest in these funds only if the associated risk is properly understood and one has the patience to stay invested for longer investment horizons of seven or more years. Therefore, total allocation to these riskier mid-cap & small-cap funds should not be more than 30-35% of the portfolio.