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.
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