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A small cap equity fund is a mutual fund or an exchange-traded fund that is composed of a group of small cap stocks. The term "small cap" refers to a stock with a relatively small market capitalization. The term differs among brokers but as of 2011, it typically referred to a market cap of $300 million US Dollars to $2 billion are Small-cap Equity Funds? Who Should Invest in Them?What is a Small Cap Equity Fund? (with pictures)Definition of Small CapWhat are Small-cap Equity Funds? Who Should Invest in Them?Investment cost: Small-cap equity funds come with an expense so that your investment is well‐managed. This is called the expense ratio of a fund. The guidelines laid out by SEBI limits the expense ratio of a fund at It is advisable that one looks at net return post expense while shortlisting a ;· How do Small-Cap Equity Funds work? The “cap” in small-cap stocks refers to a company’s capitalisation as determined by the total market value