Small-cap funds, with an assumed average return of 18%, are projected to yield ₹10.4 crore from a ₹1 lakh investment over 30 years, but with significant risk and volatility.
"And if you invest the same thing in small-cap funds, which on an average give ₹18, but only over a long period of time, this is very risky. So, as the returns are increasing, you should not make this foolish decision, that is, put all the money in this fund because, of course, there is a reason why it gives higher returns because it is also very volatile. As it goes up as fast as it comes down, as is the current situation in the market, the same ₹1 lakh can give you ₹10.4 crore in 30 years."