A Small-cap fund is an equity mutual fund that invests in stocks of small-cap companies in India. Small-cap companies are typically defined as companies with a market capitalization of Rs. 3,000 crores or less. The main advantage of investing in small-cap funds is that they have the potential to offer higher returns than large-cap funds. They can also provide diversification benefits to a portfolio.
Yes, it can be a good idea to invest in small-cap funds. Small-cap stocks typically provide greater potential for capital appreciation than large-cap stocks, and small-cap funds give investors diversification and professional management. However, it is important to remember that small-cap stocks can be more volatile than their larger counterparts and may involve greater risks. Therefore, it is important to do your research and understand the risks associated with small-cap funds before investing.
For more information on investment assets and financial management, you can rely on Future Value, a pool of financial experts that can guide you through this and help you in your investment journey.
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