What is Small Cap 250 Index and should we invest in this Fund?

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The Small Cap 250 Index is From NIFTY 251 to NIFTY 500 stock. By nature these stocks are very small in market cap and less liquid stocks.

Index Re-Balancing: Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.

Should you invest in this?

No if you just started MF investment journey

No if you have not completed minimum 5 years in any mid cap funds.

Yes If you have time at your side which should not be less than 12 years to be on safer side .

What funds should you invest?

Personally, my risk appetite does not allow me to invest in small cap and hence I do not invest.

If you want to invest, please make sure you hire an advisor or have an MFD to support you at mental level during crash.

You can invest in small cap 250-index fund

OR

Any Active small cap fund

That’s all from me for today, Thank you Abinash J