To the best of my knowledge, I understand that small-cap stocks and funds should not comprise a big percentage in your portfolio due to their inherent risk and volatility. On the other hand, due to their high beta, small-cap funds will outperform the market as a whole if you solely look at annual return instead of risk-adjusted return.
If I wanted to invest over the long term (30+ years), what are the downsides of having a portfolio that is solely comprised of small caps funds such as VSIAX, VSGAX, VSMAX etc. given that I transition to a more diversified and less risky portfolio once I am 10 years away from needing the money?
Submitted February 17, 2017 at 04:49PM by manpozi2 http://ift.tt/2kS921o
