How to choose smallcap mutual funds! #smallcapmutualfunds

How to choose Small Cap mutual funds? When picking a small-cap fund, most people focus only on returns. But here’s the thing: returns without risk context can be misleading. Let’s talk about Standard Deviation—a key metric that shows a fund’s volatility. It tells you how much your investment could swing up or down. 🔍 What the 2024 Data Tells Us: Bandhan Small Cap Fund ✅ Return: 30.20% ❌ Standard Deviation: 26.04% (Very volatile!) Quant Small Cap Fund ✅ Return: 26.07% ❌ Standard Deviation: 15.29% SBI Small Cap Fund ✅ Return: 19.19% 👍 Standard Deviation: 7.83% (Low volatility) 💡 The Key Takeaway: While high returns are tempting, they often come with greater risk. Funds with high standard deviation can fluctuate significantly, making them tough to stick with during volatile periods. ✅ What Should You Do? 1️⃣ Check returns AND standard deviation—not just one. 2️⃣ If you’re risk-averse, choose funds with lower volatility, even if the returns are slightly lower. 💬 Can you handle volatility for higher returns, or do you prefer stability? Let’s discuss in the comments! #mutualfunds #smallcaps #smallcapmutualfunds