Small Cap Mutual Funds India – Complete Guide (2026)
Small cap mutual funds in India have gained massive popularity among investors looking for high growth and long-term wealth creation. While these funds come with higher risks, they also offer the potential for exceptional returns, especially during bullish market phases. In this detailed guide by Mutualfundscreener, we will explore everything you need to know about small cap mutual funds in India — from meaning and benefits to risks, investment strategies, and who should invest. What Are Small Cap Mutual Funds? Small cap mutual funds are equity mutual funds that primarily invest in companies ranked 251st and below in terms of market capitalization, as defined by SEBI. To qualify as a small cap fund, at least 65% of the portfolio must be invested in small cap stocks. These companies are usually: Emerging businesses Operating in niche or growing industries At an early stage of expansion Because of their size, they have immense growth potential, but also face higher uncertainty comp...