Small Cap Funds: highest risk, highest reward

Small-cap funds hold at least 65% in companies ranked 251 and below by market cap. They can deliver outsized returns — and fall the hardest.

• Risk: the highest in equity; 40–60% drawdowns happen in bad years.
• Return: can lead over a full cycle, but timing hurts badly.
• Only via SIP and only with money you won't need for 7–10 years.

Not for beginners or short horizons. Use the rolling-returns and drawdown views before committing. Equity taxation applies.

→ Browse the best small-cap funds.