If you are thinking about continuing investing in small and mid-cap funds in 2021, then this place can have the answer. Yes, we know investors are flocking in to buy small and mid-cap funds in India, and if you are doubting or trying to know what the future holds for the money you have invested or want to invest. Yes, both of these categorized funds do have huge returns, but they also come with the prices of risks. So, let us take it a step at a time with small and mid-caps individually.
Should you Invest in Small Cap Fund in the Year 2021?
Let me break the ice here. Small-cap funds can give returns, huge returns, as sure as a 100%. To find out, are small-cap funds for you, let’s check some points:
- Small-cap funds are just right for you if you have held an aggressive profile with an investment horizon that goes for ten years and more.
- What is your risk appetite? When you have the stomach for higher risks, you can definitely consider investing in small-cap funds. Having said that, you will always have a small portion contributed to small-cap funds from your portfolio?
- Risks do arise in small caps and investments as a whole, but avoiding them as a whole is not the right solution. If you lose the part of investing in small funds, you might miss out on the magic of the returns.
- Irrespective of what the future holds, no one can really predict how a fund would perform in the market. But if your criteria match the features of the fund, it is the right choice to make. With small-cap funds, make sure you have a prolonged approach to investing in order to experience the benefits.
Should you Invest in Mid Cap Fund in the Year 2021?
A mid-cap company is a company that has the ability to turn into a large-cap company in the long run. So, putting it out on the table, the returns from these funds can be immensely high. So, let us see if this is the right fund for you.
