MUMBAI: Portfolio advisers are pruning allocations to mid- and small-cap equity funds by around 5 per cent in investor portfolios. This comes amid fears of the second wave of Covid-19 hurting economic growth coupled with high valuations and a sharp run-up in equities over the past year. “Indian mid- and small-cap stocks have traded at lofty P/Es. Aggressive investors can reduce mid- and small-cap allocations by 4-5 per cent from their targeted