Smallcap Fund

Independent research and education on small cap mutual funds in India. Under SEBI rules, these funds must invest at least 65% of their assets in small cap stocks, the companies ranked 251st onwards by market capitalisation. They can deliver strong long-term growth, but they are also the most volatile equity fund category, with deep falls in weak markets and thin liquidity in many holdings. Our coverage explains how to compare funds on rolling returns, downside capture, expense ratio, portfolio concentration, liquidity risk and fund manager track record. We also look at how much small cap exposure suits a long-term portfolio