Small-cap funds are investment vehicles that focus on companies with smaller market capitalisations. They offer the potential for high growth. These funds typically carry higher risks compared to large-cap funds. Investors seek small-cap funds for diversification. They play a crucial role in the economy by supporting emerging businesses. Understanding their dynamics is essential for informed investment decisions.
Small-cap mutual funds have emerged as the fastest-growing equity category in India, with investor folios expanding nearly five-fold over the past five years. This surge reflects growing retail...