1. For long-term regular investment in a small-cap fund, always select one with high star rating and high mid/long-term returns, which indicate a proven track record and performance history.
2. While it is factually true that smallcap funds have given higher returns over 10+ years, making them obvious investment choices for an aggressive investor, opting for top-rated multicap funds, would suit lesser aggressive investors better.
3. A good multi-cap fund amply allows flexibility in the fund management process, through its in-built mandate, which is helpful in long-term wealth creation.
4. A multi-cap fund is able to cushion itself better by realigning its portfolio rapidly to changing markets, or redemption pressure, as it can suitably pick from a variety of stocks, with its fund manager's deft ability and track record.
5. While aggressive investors may feel that they can build a better portfolio on their own with small-cap (and sectoral) funds, multi-cap funds make an equally excellent investment option with lesser risk.
2. While it is factually true that smallcap funds have given higher returns over 10+ years, making them obvious investment choices for an aggressive investor, opting for top-rated multicap funds, would suit lesser aggressive investors better.
3. A good multi-cap fund amply allows flexibility in the fund management process, through its in-built mandate, which is helpful in long-term wealth creation.
4. A multi-cap fund is able to cushion itself better by realigning its portfolio rapidly to changing markets, or redemption pressure, as it can suitably pick from a variety of stocks, with its fund manager's deft ability and track record.
5. While aggressive investors may feel that they can build a better portfolio on their own with small-cap (and sectoral) funds, multi-cap funds make an equally excellent investment option with lesser risk.