Small-Capitalization Fund

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Small-Capitalization Fund

A mutual fund that invests primarily or exclusively in small-capitalization (small-cap) stocks. In general, a small-cap fund invests in companies with market capitalizations of less than $1 billion or $2 billion, but there is no specific definition. Some brokerages or exchanges have slightly different definitions of small-cap. See also: High-cap, Mid-cap.
References in periodicals archive ?
56% average expense ratio of small-capitalization funds, according to Lipper (2009).
Within each style, small-capitalization funds were down least while large capitalization funds fared the worst.
Small-capitalization funds typically carry additional risks, since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.