Small-cap mutual funds invest in smaller companies that have significant growth potential. These funds can offer impressive returns over the long term, but they come with higher volatility compared to large-cap or mid-cap funds. If you're ready to handle short-term fluctuations for potentially high rewards, small-cap funds are a great option.
Best Small-Cap Mutual Funds Motilal Oswal Small Cap Fund: Strong track record, focuses on high-potential small-cap stocks. Nippon India Small Cap Fund: Known for aggressive growth and impressive returns. DSP Small Cap Fund: Balanced approach, with a focus on undervalued companies. HDFC Small Cap Fund: Reliable performance and solid management. Considerations Risk: Small-cap funds are volatile, so make sure you're comfortable with the risk. Investment Horizon: These funds work best with a long-term investment approach (5+ years).
