How-to small cap fund selection

How to select a small-cap mutual fund

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Small-cap fund selection requires the longest horizon, highest tolerance, and most disciplined SIP behaviour. The reward (long-term alpha) is real but the path is brutal.

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Market-risk disclaimer. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Small-cap drawdowns of 50-65% are normal; recovery can take 3-5 years.

Step-by-step procedure

See the procedure infobox above for the eight steps.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996.
  2. SEBI Categorisation Circular, October 2017.
  3. AMFI Best Practice Guidelines.
  4. NSE Indices methodology.

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