I’ve been investing in mutual funds since 2020 and I exited most of my small-cap and mid-cap funds in early 2025 after looking at valuations and PE multiples, they were just too high. In hindsight that worked out, because Nifty is barely up and smallcaps and midcaps haven’t gone anywhere. What bothers me more is that at these crazy valuations, domestic mutual funds are basically giving FIIs an exit and supporting overpriced markets. Stock prices already assume very strong growth, and realistically earnings will need at least 1–2 years just to catch up. Yet everywhere on Reddit people keep saying “just continue SIP”, which honestly makes no sense , blindly buying when valuations are stretched is one of the worst things you can do. At the end of the day MF houses and distributors make money no matter what, not investors. Of course you can make some returns in mutual funds, but real investing is about looking at data, valuations and deciding if those companies are actually worth buying, not just blindly pouring money into overpriced funds.