Fundwire

These small-cap funds have high large-cap exposure

Currently, most small-cap funds invest only 5 per cent of the money in large-caps, but there are exceptions

Currently, most small-cap funds invest only 5 per cent of the money in large-caps, but there are exceptions

हिंदी में भी पढ़ें read-in-hindi

"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.

Suggested read: These mid-cap funds have unusually higher large-cap presence

Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.

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