Reasons Why You Should or should Not Invest in Small Cap Mutual Fund | Jagran Business
Publish Date: 16 Jan, 2023
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Long-term wealth creation should be considered with small-cap funds. It's challenging to invest in a small-cap fund, though. They are vulnerable to ongoing free falls. When you invest in something that does not yield returns when other markets are performing well, you will feel uneasy. Because of this, you shouldn't devote more than 10 to 15% of the corpus to small-cap funds.
Advantages of Small Cap Mutual Funds
- Higher growth potential
- Diversity of options
- Untapped market
Disadvantages of Small Cap Mutual Funds
- High Volatility
- Timing can impact returns
- Liquidity
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