Micro Cap Mutual Funds

Micro Cap Mutual Funds invest in smaller companies with market capitalization below INR 3500 Crore, offering growth but also higher risk due to exposure.

Micro Cap Mutual Funds Meaning

High Return Potential: Investing in small, high-potential businesses offers significant return potential.

Benefits Microcap Mutual Funds

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.

Benefits Microcap Mutual Funds

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 Vs Small Cap Mutual Fund

Market Cap

Micro Cap Vs Small Cap Mutual Fund

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 Vs Small Cap Mutual Fund


Micro Cap Vs Small Cap Mutual Fund

Micro Cap Mutual Fund: Less diversified portfolio due to limited options.  Small Cap Mutual Fund: Relatively more diversified portfolio.


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