Funds To Watch: SBI Small-Cap Mutual Fund & ICICI Prudential Value Discovery Fund

SBI Small-Cap Fund Small-cap mutual funds are riskier compared to their large- and mid-cap counterparts, as they invest in relatively smaller or nascent companies that may be under-researched. They also have a high risk-reward ratio. The small-cap segments are good investment picks for long-term investors who have considered both returns as well as the risks. A word of caution though: small-caps should not form the foundation of your portfolio. They should be included only to the extent permitted by your risk profile. Once you are sure about your risk-bearing capacity, you could consider including them. SBI Small-Cap Fund has a superior track record. The fund manager prefers to diversify the portfolio in quality stocks across sectors to mitigate the risks—a strategy, which has worked in its favour. If you can endure high volatility, this fund has the ability to reward you...