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Mutual Funds

  Mutual Funds   |   Terms
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  • June 17, 2022
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Small-Cap Fund

A mutual fund that mainly invests in companies whose market capitalization is considered to be small by the industry standards. Typically, small capitalization implies sizes exceeding $300 million, but not larger than $2 billion. The small cap category of mutual funds is also classified as such based on multiple parameters- e.g., annualized returns, latest returns, SIP returns, latest net asset value (NAV), etc. For example, SIP (systematic investment plan) returns arise from investing a fixed amount of money in a given fund at regular intervals. The size of such indicators may also be used as determinant of the category to which a mutual funds would belong.


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