Currently, most small-cap funds invest only 5 per cent of the money in large-caps, but there are exceptions
01-Jun-2023 •Aakar Rastogi
"Risk hain toh ishk hai (Taking risks is a high for me)" is a dialogue made very popular in the smash-hit TV show Scam 1992, and a line that aptly captures the philosophy of an average small-cap fund investor.
Since small-cap mutual funds have a high risk-reward strategy because they invest at least 65 per cent of the money in small-cap stocks, the fact that they also invest in the relatively-safe large-caps can surprise a few people.
And what can be more surprising is that a few small-cap funds invest way more in large-caps than the norm, as you can see below.
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