New Delhi, Feb. 26 -- Fund managers of small-cap mutual funds have invested large amount in micro capital stocks over the past one year, while they explored and capitalised on their potential, reported Business Line.

ACEMF data show a considerable jump in micro-cap stock allocations within small-cap fund portfolios, rising to 31 per cent in January 2025 from 25 per cent in January last year. Reportedly, the share of small-cap stocks fell during the same period from 49 to 43 per cent.

Despite the risks linked with micro-cap stocks such as heightened volatility, limited liquidity and increased vulnerability to market downturns, small-cap fund managers seek opportunities in this under-researched segment to effectively deploy their steady a...