Size matters: Why you need to limit your exposure to small-cap mutual fund schemes Synopsis A few small-cap funds have seen their sizes balloon. Nippon Small Cap and HDFC Small Cap now run assets in excess of Rs 10,000 crore. So what is the big deal, you may ask? For the nature of the market segment these funds operate in, a large size can become a noose around the neck. Small-cap equity funds are enjoying a strong run. However, with stock prices moving up sharply, some funds have grown considerably in size. Can a burgeoning asset base pose a problem for these funds?