What is important for you is to know how and when to invest in these classes of funds.
- Small cap – if you are an aggressive investor. But do note that for almost ten years (since peak of 2007) the small cap index has given almost no return!
- Mid cap funds – less risky compared to small cap. But here again remember mortality of these companies is almost 75%. And there are many shady operators, to avoid.
- Large cap funds – For a long term mutual fund investor this is good place to invest as you get steady returns.
As always match investment with your risk profile assessment done with help of a SEBI Registered Advisor. Don’t go with brokers and appswho do not offer you “Direct Plan” Mutual funds – they want to make more money out of you, than helping you make good returns.
