What are Small-cap Funds?

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What are Small-cap funds
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introduction

• Small-cap funds are equity mutual funds that
  invest in the stocks of small-cap companies.
  Small-cap companies are the companies with a
  market capitalization of up to Rs.500 crore
• You can invest in small-cap funds if you have a
  long-term time horizon.

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Advantages of investing in mid-cap funds

• They earn higher returns than both large
  mid-cap funds
• They are ideal for long-term wealth building

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conclusion

• One thing is clear, you should opt for Small Cap
  Mutual Funds only if you have higher risk
  tolerance. Usually, many investment advisors
  recommend investors to dedicate a small portion
  of their portfolio towards small-caps.

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