Zerodha Nifty Smallcap 100 ETF

The Zerodha Nifty Smallcap 100 ETF, currently India’s lowest-priced small-cap ETF at ₹9.80, offers tantalizing growth potential, mirroring the Nifty Smallcap 100 Index. Its impressive 26.1% CAGR over five years, significantly outperforming the Nifty 50, highlights the segment’s power. However, what investors must grasp is the inherent high volatility; we've seen significant drops, like 25% in 2018 and 40% during COVID. While long-term SIPs have historically maximized wealth, this segment is unequivocally not for the faint of heart. My advice: allocate a prudent 20-25% of your portfolio and commit to a minimum 10-year holding period to truly harness its powerful wealth creation potential, while being prepared for market swings.