Axis Small Cap Fund offers these benefits for retail investors:

• This small cap fund offers a bottom up approach to investing in small caps aimed at identifying long term businesses
• Axis Small Cap Fund aims to generate alpha with a diversified portfolio of stocks
• This equity mutual fund scheme builds a portfolio keeping in mind risk and reward by containing mistakes and navigating volatile stock movements
• Axis Small Cap Fund might be ideal for small cap investors who can patiently invest and those willing to absorb short term volatility
• This scheme can also be considered by investors with an investment horizon of 5 years or more

Axis Small Cap Fund works pretty much like any other equity mutual fund scheme. This small cap fund invests a majority of its investible corpus in equity and equity related instruments of companies with small market capitalization. The scheme may invest the remaining corpus in other money market instruments in accordance with the scheme’s investment objective. 
The Asset Management Company running a small cap fund collects money from investors sharing a common investment objective and the fund manager invests this accumulated sum across the small cap sector. In exchange, the investors receive units in accordance with the scheme’s existing Net Asset Value (NAV). The NAV of the scheme may vary based on the mid cap scheme’s overall performance. Axis Small Cap Fund invests in stocks of small cap companies that have growth potential and can offer long term earnings to investors.

Equity mutual funds can be largely categorized based on market cap. Large cap, mid cap, and small cap funds are the different types of equity funds each of whom taps into companies belonging to specific market capitalization. Axis Small Cap Fund is an equity mutual fund that specifically targets credible stocks of companies with small market capitalization. This equity fund is different than a large cap, mid cap, or multi cap fund each of which possesses unique traits.