SIP Decision: When Small Cap Funds Are Better For Investing

SIP Decision: When Small Cap Funds Are Better For Investing

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Mutual Fund SIP investments can help you generate wealth in the long run. However, choosing the right category is often difficult. Here’s a look at when Small Cap Funds are better.

Mutual Fund SIP investments can help you generate wealth in the long run. However, choosing the right category is often difficult. Here’s a look at when Small Cap Funds are better.

Investing in Small Cap Funds can be better than large and mid cap schemes when you are aiming for higher returns and willing to take on more risk.

Investing in Small Cap Funds can be better than large and mid cap schemes when you are aiming for higher returns and willing to take on more risk.

Small Cap funds invest in smaller companies that have the potential for significant growth.

Small Cap funds invest in smaller companies that have the potential for significant growth.

Small Cap funds are best suited for long-term investors who can weather market volatility.

Small Cap funds are best suited for long-term investors who can weather market volatility.

It is important to note that creating a well-structured mutual fund portfolio is necessary for investors. This involves careful consideration of  risk tolerance, investment goals and time horizon.

It is important to note that creating a well-structured mutual fund portfolio is necessary for investors. This involves careful consideration of  risk tolerance, investment goals and time horizon.

Small Cap Funds target companies ranked from 251 onwards by market cap. These companies have smaller market caps, generally falling below Rs 20,000 crore.

Small Cap Funds target companies ranked from 251 onwards by market cap. These companies have smaller market caps, generally falling below Rs 20,000 crore.

What are Small Cap funds?

What are Small Cap funds?

To qualify as a Small Cap Fund, 65% of total assets must be invested in small-cap companies.

To qualify as a Small Cap Fund, 65% of total assets must be invested in small-cap companies.

Small Cap Funds are known for their higher risk and volatility compared to large and mid-cap funds.

Small Cap Funds are known for their higher risk and volatility compared to large and mid-cap funds.

However, small cap funds also present the opportunity for substantial growth. Therefore, these funds are best suited for long-term investors with a high-risk tolerance.

However, small cap funds also present the opportunity for substantial growth. Therefore, these funds are best suited for long-term investors with a high-risk tolerance.

Disclaimer: This story is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.

Disclaimer: This story is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.