Hence, through the suitable selection process, small caps can potentially help grow wealth in the long run, making them a viable part of a broader mutual fund portfolio. Risk isn't the enemy It is essential to understand and manage risk when investing in small cap funds instead of fearing it. Unlike large cap companies that can already be priced efficiently in the market, small caps can be mispriced or overlooked presenting an opportunity for a potential entry point into the market. Instead of trying to avoid risks, you can take a structured approach which can help you mitigate market volatility. This includes diversifying across sectors and tracking company fundamentals while being mindful of governance quality. The Bajaj Finserv Small Cap Fund approach The Bajaj Finserv Small Cap Fund has a 3-in-1 advantage of Growth, Quality and Value.