Even the ‘worst’ small-cap fund = Over 19% annual returns in last 10 years
‘Average’ small-cap fund = Over 23% annual returns in last 10 years ‘Best’ small-cap fund = Roughly 29% annual returns in last 10 years
But small-cap funds can go to sleep for a long time. In fact, 6 of the 10 longest-serving small-cap funds delivered 0 returns for three years or more in the last decade!
Even the top-performing small-cap fund (Nippon India Small Cap) that has delivered almost 29% in 10 years gave zero returns for 3 years!
- Pick small-cap funds if you have at least 7 years’ time horizon - Pick such funds if you can experience market fluctuations