Small-cap funds are made up of smaller,
lesser-known companies that the mutual fund thinks show great
promise and will grow substantially over a few years. 
![images (1).jpeg](https://steemitimages.com/DQmV4a6mvpBFJtkhqs2mny7TVXZoeSn7ZaSj8fBtUtgTKTW/images%20(1).jpeg)
[source](https://goo.gl/images/3v5c7p)

While many people think that small-cap stocks have performed better than other
sectors have, small-cap funds, like the underlying small-cap stock,
have fewer capital resources, and are known to be more volatile than
their larger counterparts.