MUTUAL FUND CATEGORY
Small cap funds invest in emerging companies with high growth potential, suitable for investors with long-term vision and higher risk appetite.
Small-cap equity funds invest mainly in companies with small market capitalization. These companies are often in early stages of growth and development with significant potential for future expansion.
Such companies may operate in niche markets, follow innovative business models or offer unique products and services. Small-cap funds allow investors to participate in the early growth journey of these businesses.
However, small-cap stocks generally carry higher risk due to lower liquidity, limited resources and higher market volatility compared to large-cap and mid-cap stocks.
Key Features
Small cap funds may offer strong return potential over the long term, depending on market cycles, company performance and investment discipline.
Indicative: 18% – 30%
These funds can be considered for long-term goals where investors are prepared to stay invested through market fluctuations.
Best For Long-Term Goals
Small cap funds are generally riskier than large cap, mid cap and many other asset categories because of higher volatility.
High Risk Category
A longer holding period is important to manage volatility and allow businesses enough time to grow and mature.
More Than 10 Years Suggested
Companies that do not fall under large-cap or mid-cap classification are generally included in the small-cap category.
Beyond Top 250 Companies
These funds invest across multiple sectors and companies to reduce the impact of individual company performance.
Multi-Sector Exposure
