Since the small-cap universe is very large, and it’s not tracked as extensively, there is a greater possibility of fund managers finding hidden gems.
The stock market has shown considerable strength in recent weeks, with the indices moving up swiftly. Year-to-date, however, small-cap funds have remained flat (0.9 per cent). Over longer periods of three, five and 10 years, however, small-cap funds have rewarded their investors handsomely. After the recent bout of volatility (between October 2021 and June 2022), one question on investors’ minds today is whether this is a good time to enter small-cap funds.
“Small-cap funds are always a good investment for long-term investors who have the patience to live through the volatility associated with equity markets in general and small-caps in
First Published: Sep 02 2022 | 6:01 PM IST