When we are talking about "large-cap" versus "small-cap" funds
what we are really talking about is the stocks the underlying
securities in the mutual fund is going out to buy. A large cap fund
is purchasing large cap stocks and a small cap fund is purchasing
small cap stocks. What does that really mean? Small cap stocks are
riskier than large cap stocks, so long-term we have an expectation
that a small cap fund is going to do better than a large cap fund.
However, it is also riskier so in the short term so we are going to
see much greater price volatility with a small cap fund than we are
with a large cap fund.