Investing in Small-Cap Stocks: Top 10 Tips for Absolute Beginners

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Key Points

Investment Risk: The most successful small-cap funds carry risks but deliver profitable returns..

To get strong returns, you must take into account funds that outperform small-cap benchmarks and other small-cap funds...

Make sure that your total exposure to midcap and small-cap funds does not exceed 25% of your total exposure to equity funds after selecting a solid small-cap fund...

Any fund manager can work tirelessly during a recession and stand out because small-cap mutual funds often produce superior outcomes in strong markets...

Due to this, small-cap mutual funds are a wise investment choice and a terrific option for risk-tolerant investors...

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