The demand for small-cap funds has seen an incredible surge in the last 18 months, with assets skyrocketing by a staggering 87 percent since January 2022. Recognizing this growing trend, Quantum Mutual Fund has recently introduced the Quantum Small Cap Fund (QSF), a scheme that focuses on the small-cap segment of the market.
What exactly are small-cap stocks? These stocks are categorized based on their market capitalization, with large-cap stocks constituting the top 100 companies. The next category, mid-cap stocks, includes companies ranked from 101st to 250th in terms of market capitalization. Finally, small-cap stocks encompass companies ranked from the 251st position onwards.
The Quantum Small Cap Fund (QSF) opened for subscription on October 16 and will remain open until October 27. This fund aims to capitalize on the significant growth seen in the small-cap index, which has surged by over 35 percent in the past year. By carefully examining stocks with market capitalizations below the threshold of large-cap and mid-cap stocks, the QSF seeks to identify promising investment opportunities in the small-cap segment.
Investing in the Quantum Small Cap Fund could be a wise move if you are seeking exposure to potentially high-growth stocks. Small-cap stocks generally have greater room for growth compared to already established large-cap companies. However, it’s important to note that small-cap stocks also carry a higher degree of risk due to their volatility and susceptibility to market fluctuations.
While the Quantum Small Cap Fund presents an exciting opportunity, it’s essential to consider your own financial goals, risk tolerance, and investment horizon before making a decision. Consulting with a financial advisor can help you evaluate whether this fund aligns with your investment strategy.
FAQ:
Q: What are small-cap stocks?
A: Small-cap stocks are companies that fall within the lower range of market capitalization rankings. They represent the 251st company onwards.
Q: How long is the subscription period for the Quantum Small Cap Fund?
A: The subscription period for the Quantum Small Cap Fund is from October 16 to October 27.
Q: What are the advantages of investing in small-cap stocks?
A: Small-cap stocks have the potential for higher growth compared to large-cap stocks. They offer investors the opportunity to discover promising companies in the early stages of their development.
Q: Are small-cap stocks riskier than large-cap stocks?
A: Yes, small-cap stocks tend to be more volatile and are susceptible to market fluctuations. They carry a higher degree of risk but also provide the potential for greater returns.
Sources: [Quantum Mutual Fund](https://www.quantummf.net/)