–Prakash K Bhutadiya
You have not shared your personal or financial details. So it is not possible to offer personal advice. We do not recommend small cap funds to new or inexperienced investors. New investors will find it difficult to handle the volatility and prolonged underperformance associated with these schemes. So, if you don’t have experience investing in equity mutual funds, don’t get into these schemes. These schemes invest mostly in small stocks that are extremely volatile and they can also run into trouble in a bad phase in the market. These stocks can also underperform for a long time before bouncing back. Inexperienced investors will find these situations very difficult to handle.
However, if you have the experience of investing in equities and are ready to take extra risks and handle the volatility associated with the small cap segment, you may go ahead and invest in small cap funds. Remember, you should invest in these schemes with a very long investment horizon and continue with them irrespective of the market conditions to create wealth over a long period of time. Here are our recommended small cap schemes: Best small cap mutual funds to invest in 2023
