When Investing In Mutual Funds, One Of The Key Considerations Is The Size Of The Company Or Companies That The Fund Invests In. This Is Because The Size Of A Company Can Impact Its Growth Potential And Risk Profile. Small-Cap, Mid-Cap, And Large-Cap Mutual Funds Are The Most Typical Categories, And Mutual Funds Are Frequently Categorized By The Size Of The Companies They Invest In. In This Blog, We Will Explore The Differences Between These Categories And List The Top 5 Best Mutual Funds In Each Category In India.

Small Cap Mutual Funds:

Small-Cap Mutual Funds Invest In Companies With A Small Market Capitalization. Companies Are Often Young And Have A Higher Potential For Growth, But They Also Carry A Higher Level Of Risk. Small-Cap Mutual Funds Are Suitable For Investors With High-Risk Appetites Looking For Long-Term Capital Appreciation.

Leading 5 Small Cap Mutual Funds In India:

1. SBI Small Cap Fund
2. HDFC Small Cap Fund
3. Kotak Small Cap Fund
4. Nippon India Small Cap Fund
5. DSP Small Cap Fund

Mid-Cap Mutual Funds:

Mid-Cap Mutual Funds Invest In Companies With A Market Capitalization Of Approximately Between Rs 5000 Crore And Rs 20,000 Crore. These Companies Are Typically More Established Than Small-Cap Companies But Still Have Room For Growth. Mid-Cap Mutual Funds Offer A Good Balance Between Growth Potential And Risk And Are Suitable For Investors With A Moderate-To-High-Risk Appetite.

Leading 5 Mid Cap Mutual Funds In India:

1. Axis Mid Cap Fund
2. DSP Mid Cap Fund
3. Franklin India Prima Fund
4. Kotak Emerging Equity Fund
5. HDFC Mid Cap Opportunities Fund

Large Cap Mutual Funds:

Large-Cap Mutual Funds Invest In Companies With A Market Capitalization Of Approximately Rs 20,000 Crore Or More. These Companies Are Well-Established And Have A Proven Track Record Of Stability And Profitability. Large-Cap Mutual Funds Offer Lower Growth Potential But Also Carry Lower Risk Than Small- And Mid-Cap Funds. They Are Suitable For Investors With A Low- To Moderate-Risk Appetite.

Leading 5 Large Cap Mutual Funds In India:

1. SBI Blue-Chip Fund
2. HDFC Top 100 Fund
3. ICICI Prudential Blue-Chip Fund
4. Axis Blue-Chip Fund
5. Nippon India Large Cap Fund

In Conclusion, The Size Of A Company Can Impact Its Growth Potential And Risk Profile, Which Is Why Mutual Funds Are Often Categorised By The Size Of The Companies They Invest In. Small-Cap Mutual Funds Are Suitable For Investors With A High-Risk Appetite; Mid-Cap Mutual Funds Offer A Good Balance Between Growth Potential And Risk; And Large-Cap Mutual Funds Are Suitable For Investors With A Low- To Moderate-Risk Appetite. When Selecting A Mutual Fund, It Is Important To Consider Your Risk Profile And Investment Goals To Choose The Best Fund For You.