The rush for small-cap funds in the investment landscape is dissected in this article, shedding light on the reasons behind this growing trend. Small-cap funds, which invest in the stocks of relatively smaller companies, have gained popularity due to their potential for higher returns over the long term. Investors are drawn to these funds as they offer exposure to emerging businesses with significant growth potential. The article also delves into the risks associated with small-cap investments, including higher volatility and market sensitivity. It highlights the need for a balanced portfolio strategy and diversification. As investors seek opportunities in this asset class, understanding the rationale behind the surge in small-cap funds becomes essential for making well-informed investment decisions in an ever-evolving market.
Unpacking the Surge in Small-Cap Funds: The Rationale Behind the Trend
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