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If you have surplus cash which you can risk to build your wealth in the long term, small-cap mutual funds are best for you. Small-cap companies present a greater capital gain but with a high degree of risk.

Small-cap mutual funds invest companies with a market capitalization of up to Rs. 500 Cr.

Small companies are more volatile in terms of stock price and can give potential capital downfall in the short term but very high returns in the long run.