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MF Corner: Experts discuss strategies for investing in small-cap and equity mutual funds

India has 5100 stocks classified as smallcaps with four different smallcap indices. However out of the four indices only two are available for investors from an investing point of view, that is Nifty Smallcap 250 index and Nifty Smallcap 50 index.

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By Sumaira Abidi  Jun 23, 2022 4:04:56 PM IST (Published)

Listen to the Article(6 Minutes)
India has 5,100 stocks classified as small-caps, with four different small-cap indices. However only two indices are available from an investing point of view — Nifty Smallcap 250 index and Nifty Smallcap 50 index.

The Nifty Smallcap 250 index represents the companies ranked from 251 to 500 based on full market cap from Nifty 500. This index is created using a free-float market cap-based model.
The Nifty Smallcap 50 index is a subset of Nifty Smallcap 250, but is based on daily turnover of top 100 companies in the 250 index.
So, given the extremely high beta nature of small-caps, is it worthwhile to invest in small-cap mutual funds? To discuss this, CNBC-TV18 spoke to Prableen Bajpai, Founder of Finfix Research & Analytics.
Also Salonee Sanghvi, Founder at My Wealth Guide, discusses how investors should select the best equity fund for their portfolio.
Watch accompanying video for more.

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