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Small-cap funds(https://www.edelweissmf.com/types-of-mutual-funds/equity-fund/edelweiss-small-cap-fund) 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<br>You can invest in small-cap funds if you have a long-term time horizon.
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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.
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
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.