Can a moderate investor choose small cap schemes?
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If you are investing for your long-term financial goals and you have a moderate risk profile, you should invest mostly in multi cap mutual fund schemes. You are currently investing in three small cap mutual fund schemes. These schemes are extremely risky and volatile. They are recommended only to investors with a very high tolerance for risk and ability to withstand extreme volatility. Many investors ignore their risk profile when they have a very long investment horizon. It can be disastrous when the market gets into a tailspin. You may not be able to tolerate prolonged volatility or heavy losses.
For more, read: Best multi cap mutual funds to invest in 2019