India, July 4 -- Small cap funds can offer investors a way to participate in the early growth stages of emerging companies. These funds typically invest in businesses with smaller market capitalisation, often beyond the top 250 listed companies. While small cap funds may offer strong returns over the long term, they also tend to be more volatile than large or mid cap funds. For investors seeking to gradually build exposure to this segment, a Systematic Investment Plan (SIP) with a step-up feature can be a relevant strategy.

The Bajaj Finserv Small Cap Fund NFO, which began on June 27, 2025, and is open till July 11, 2025, provides an opportunity to consider a portfolio that focuses on quality, value, and growth-oriented small cap compani...