Key Points
SIP Calculator: Over the past three years, small-cap funds have clocked an annualised return of 39.4%, compared to flexi-cap funds 22.4%, and mid-cap funds 31.1%..
With small-cap funds scorching the performance charts, these have become the flavour of the season..
Many investors avoid small-cap funds for the perceived risks, since the returns tend to exhibit higher volatility..
Morningstar data shows that over a 10-year time span, small-cap funds have taken roughly 152 weeks to recover value from the worst drawdown (covering peak trough-peak date)..
Small-cap funds were sitting on a 10-year return of 7.5%, lower than mid-cap funds 8.8% and only marginally higher than flexi-cap funds 6%..
