Micro Cap Mutual Funds invest in smaller companies with market capitalization below INR 3500 Crore, offering growth but also higher risk due to exposure.
High Return Potential: Investing in small, high-potential businesses offers significant return potential.
Diversification: These funds allow investors to diversify their portfolios by including companies from various sectors.
Affordability: Being small companies, the cost of shares in micro-cap firms is usually lower, making it affordable for average investors.
Exposure to Innovations: Micro-cap companies often bring innovative products and technologies, providing an exciting investment opportunity.
Micro Cap Mutual Fund: Less than INR 3500 Crore. Small Cap Mutual Fund: Market cap ranking less than INR 5000 Crore.
Micro Cap Mutual Fund: Higher due to the smaller size of companies: Small Cap Mutual Fund: Comparatively lower than Micro Cap funds.
Micro Cap Mutual Fund : Lower liquidity compared to larger-cap funds. Small Cap Mutual Fund : Moderate liquidity, but lower than large-cap funds.
Micro Cap Mutual Fund: Less diversified portfolio due to limited options. Small Cap Mutual Fund: Relatively more diversified portfolio.