Go long to make the most of strong run in the small-cap fund category

Allocate 10-15% to these funds for a 10-year period, don't just rely on history

The small-cap fund category has yielded average returns of 88.9 per cent over the past year. After a six-year bull run (2012-2017), this category’s performance peaked in January 2018. Thereafter, it languished for two years. Both new investors, who wish to take exposure because of the FOMO (fear of missing out) factor, and existing investors, who are wondering if the rally has any steam left, must take a close look before diving in.
 
Sound long-term prospects
 

Fund managers believe that once the second wave of the Covid-19 pandemic ends and demand recovers, this segment could continue