Mutual funds: How much of your portfolio should be allocated to smallcap funds?

If you’ve been investing for a long time, you’ve probably heard the unsolicited advise “you should invest in smallcaps for best returns” on numerous occasions. To be fair, smallcap funds have fulfilled their promises if you look at their returns over the past few years. Looking at smallcap funds’ statistics over the last three years (with at least three years of vintage), the following is what they have accomplished:

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