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Small-cap index funds are mutual funds that replicate the performance of an index made up of small-cap companies. These are companies top performing mutual fund with a relatively small market capitalization, generally below ?5,000 crore. These funds are designed to track the performance of indices like the Nifty Smallcap 250 Index or best investment plan in india BSE Smallcap Index, which includes a diversified set of small-cap stocks