Small-cap mutual funds may offer high growth potential but come with higher risk and are susceptible to market volatility. This makes them suitable investment options for investors with a higher risk tolerance and long-term investment horizon.
There are many top small-cap mutual funds suitable for a 5-year investment horizon. It is advisable to compare multiple funds to determine the one that suits you best. Also, remember to consider factors such as your financial objectives and risk profile when selecting a fund.
When selecting a small-cap mutual fund, you must consider factors like historical performance, expense ratio, Sharpe ratio, standard deviation, fund manager's track record, risk management measures and the fund's investment strategy.
Yes. You can invest in two small-cap funds simultaneously. However, it is advisable to diversify your investment portfolio by investing in different mutual funds. Doing so can help reduce risk and protect your capital against adverse market movements.
Yes, small-cap funds are generally riskier due to their susceptibility to market volatility. However, they may also offer substantial returns, especially in the long term.
If you possess high-risk tolerance, a long-term investment horizon and the ability to withstand market fluctuations, you may consider investing in small-cap funds.
The expected returns of small-cap mutual funds vary depending on the type of fund. It is important to remember that the returns are not guaranteed and are dependent on market conditions.