Small and midcap funds have become investors’ favourites in the past three years. As per the Association of Mutual Funds of India (AMFI), the mutual fund industry’s trade body, the number of investor accounts in midcap funds more than doubled to 1.4 crore in the last four years, while smallcap funds' folios more than tripled to 1.9 crore. But small and midcap funds are different from largecap funds in terms of their risk, return and diversification. Here’s what investing in these small and mid- cap funds entails.
