This article aims to analyze the small cap mutual funds are invested in companies that below top 250 stocks in the exchange as per their market capitalization. Small cap mutual funds have turned out to be a popular investment option due to their high returns. Small cap funds invest in all companies expect the top 250 in terms of market capitalization. Thought these funds are relatively riskier and volatile in short to medium term than other equity-oriented funds, they promise a higher upside of return in the long term. A mutual fund is a capital market financial intermediary that aggregates collective investments as units of individual and corporate investors and maintains a portfolio of multiple investment schemes. These collective investments in stocks and debt securities on behalf of those investors.
