India, Oct. 3 -- Mutual funds give investors a structured and affordable way to participate in equity markets without buying individual stocks on their own. They offer diversification, professional fund management, and a wide range of options based on financial goals and risk appetite. Among these, small-cap funds stand out for their higher growth potential.

According to the Securities and Exchange Board of India (SEBI), small-cap companies are those ranked 251st and beyond in terms of full market capitalisation. Small-cap mutual funds invest at least 65% of their assets in the equity and equity-related instruments of these companies, typically having a market capitalisation under Rs.5,000 crore.

Learn in detail how small-cap funds work...