Invest in small cap funds for long-term only!

As mentioned before invest in small cap funds if the risks are properly understood and you have the patience to stay invested for at least 5-7 years. Always take the active route for small cap funds. Fund size matters a lot in small cap funds. Generally, smaller AUM funds are expected to do better but it is not always the case. Check fund manager performance over minimum 3 years as different fund managers have contrasting investment styles which may/may not work at different times. So, pick small cap funds carefully if you decide to invest in them.