Buying when small-caps are trading at a deep discount (on a price-to-earnings or price-to-book basis) compared to large-caps can offer a "margin of safety" for long-term gains. 4. The 7-Year Commitment
As the economy stabilizes and demand improves, smaller, more agile firms can see revenue and profit grow more sharply than their massive counterparts. when to buy small cap funds
When large-caps have dominated for a long period—as they have for over a decade—the can widen significantly. Buying when small-caps are trading at a deep