New Delhi, July 23 -- Small-cap investing is often associated with higher return potential, but it also comes with much sharper and more frequent declines than large-cap investing.

A new study by DSP Mutual Fund highlights this trade-off, showing that steep corrections have been a recurring feature of the Nifty Smallcap 250 Total Return Index (TRI) as compared to the Nifty 50 TRI.

The study highlights that while market corrections can be unsettling, the eventual outcome for long-term investors has historically depended less on market timing and more on remaining invested through periods of volatility.

Sharp corrections have been far more frequent in the small-cap universe than among large-cap stocks over the last 20 calendar years (200...