Best Small-Cap Mutual Funds to Buy in December 2025

Why should I consider small-cap funds now?

Small-cap funds often deliver higher growth because investing in smaller companies can enable them to scale rapidly. In 2025 conditions, valuations and macroeconomic changes may provide entry points.

How long should I hold small-cap funds?

Ideally, 5–10 years. Short-term volatility is common; long-term holding smooths out ups and downs and maximizes compounding benefits.

Is investing in small-cap funds a matter of risk?

Yes, they are more volatile than large-cap or diversified funds. They can deliver maximum returns while taking on higher risk.

Which is better for investment: SIP or lump sum?

A SIP (systematic investment plan) can minimize volatility and decrease risks.

Is there any guarantee of high returns in small-cap funds?

No, the small-cap fund carries high risk and is affected by market conditions, so there is no guarantee of future returns.