Navigating the Roller-Coaster of Small-Cap Funds
In the last 14 months, Small-Cap funds have generated returns that are nearly unprecedented. While their impressive performance may be enticing, it’s crucial to understand the inherent risks before diving in. The performance of small-cap funds and companies is highly cyclical. Historically, they tend to outperform or surge for 15-18 months before pausing to start their next phase of growth.