New Delhi, Aug. 12 -- The Indian equity market's small- and mid-cap segments have long captured the attention of growth-oriented investors. These companies promise exponential returns that can transform portfolios, especially for investors willing to ride the wave of market cycles.

But with great potential comes considerable volatility, and this is where the debate between active and passive investing becomes wealth-defining.

Unlike large-cap companies, which typically offer stability and established cash flows, small- and mid-cap companies often operate in emerging sectors, experience sharper business cycles, and face greater regulatory and competitive risks. These characteristics make them more vulnerable to sentiment shifts and compa...