What Is Smallcap In Mutual Fund?
June 7, 2023 ⚊ 1 Min read ⚊ Views 109 ⚊ FINANCE
Small-cap mutual funds invest in stocks of companies with a smaller market capitalization, typically between $300 million and $2 billion. These companies are often in the early stages of growth and have a higher potential for future growth. Small-cap funds are considered to be higher risk than large-cap funds due to the volatility of smaller companies, but can also offer higher potential returns over the long term. It’s recommended to have a diversified portfolio that includes a mix of large-cap, mid-cap, and small-cap mutual funds to balance risk and potential returns.
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