Ch.5 · NFO Process and Rules · medium
What risk level on the Riskometer would typically be assigned to a small cap equity fund?
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EXPLANATION
Small cap funds invest in companies ranked 251st and below by market cap — these are highly volatile, illiquid, and subject to extreme price swings. Small cap funds are typically assigned the 'Very High' risk level on the Riskometer, indicating investors can experience significant capital loss in the short term.
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