Small-cap funds are known for delivering high returns, but there is a caveat. They deliver returns in the long term, say 7-10 years. Also, they are highly volatile in nature in the short run. Investors looking for a portfolio that has the potential to deliver superior returns at higher risk can consider buying the units of Nippon India Small cap Fund. The fund comes with a proven history of delivering over the long term. In the last 10 years, the fund has delivered a compounded annual growth rate (CAGR) of 26.10 per cent, beating the broader market and beating the benchmark with almost double returns. Over the seven-year period, it has clocked 23.18 per cent, as against the small-cap fund category average return of 18.98 per cent. Portfolio The fund follows prudent risk management measures like margin of safety and diversification across sectors and stocks with a view to generate relatively better risk-adjusted performance over a period of time. The fund manager prefers to build the portfolio with an optimal mix of growth and value. He also does not shy away from taking advantage of...