Small-Cap Funds: Read This Before Investing in Them

Stellar returns

Small-cap funds have dominated the past year with a remarkable 24.57% return vs mid-cap funds’ 21.22% and large-cap funds’ 12.84%. *October 2023 data

Risk-return trade-off

Small-cap funds may have been in stunning form, but you should be aware of the risks, too.

Volatile in the short-term

Investors have lost as much as 61.2% of money in a 12-month stretch.

What should you do

- Small-cap funds suit investors with at least a five-year time horizon - Invest up to 20% of your money in them.