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Should You Invest In Small Cap Funds

The Morning Standard

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May 12, 2025

MALL Cap Equity Funds have been in the eye of a storm ever since a prominent fund manager expressed his opinion on this category at the prevalent valuations.

- ASHOK KUMAR

Should You Invest In Small Cap Funds

Several others were of a contrary opinion and the electronic media had a field day flogging this debate longer than needed.

So, what exactly are these Small Cap Equity Funds?

They are those funds that must mandatorily invest at least 65% of their assets in equity stocks of Small-Cap companies, as per SEBI's categorisation of funds. Small-Cap companies are defined to include all companies whose market cap is lower than that of the 250 largest companies (in terms of market capitalisation) listed in the Indian stock market.

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