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Small-Cap Equity Mutual Funds, invest in companies that have market capitalization, less than INR 500 Crore, and are ranked below 250 in terms of market capitalization.
These funds take the advantage of the growing potential of the small-cap companies in the long run as they are young firms, but at the same time, the risk of investing in small-cap is a bit high than another member of the Equity category.
Investors who plan to invest for long and can bear the volatility of the market should look towards investing in small-cap equity mutual funds. These funds can rise the most in a bull market and can also suffer the steepest falls in a bear market.
Benefits of Investing in Small-Cap Funds
- Small-cap funds invest in small-cap companies that are more flexible and can adapt to changes quicker than the larger companies, and thus can show good growth.
- Small-cap funds tend to perform better than large-cap funds but do remember they are more volatile than large-cap funds.
- Small-cap stocks are priced lower than mid-cap and large-cap stocks.
- Small-cap funds provide a good scale for diversifying one’s portfolio.
If you are searching for funds that help you gain good returns in long run then stop and have a look at the BEST SMALL-CAP FUNDS that we have listed below, for your assistance!
To receive a free advisory on Investments In Mutual Fund, contact our executives asap!
Nippon India Small Cap Fund (G)
A small-cap category equity mutual fund, run and managed by Nippon India Mutual Fund House. The fund has 97.92% investment in Indian stocks, out of which 3.91% is in large-cap stocks, 6.74% is in mid-cap stocks, 78.3% in small-cap stocks.
The fund size of the scheme is around Rs 15,353 crores and it charges a total expense ratio of around 1.98%. Fund also charges a kind of exit load equal to 1.0% of sell value if the fund is sold before 365 days.
The prime objective of the fund is generating long-term capital appreciation by investing predominantly in equity and equity-related instruments of small-cap companies. While its secondary objective is to generate a consistent return by investing in debt securities.
This fund is best recommended to investors looking to invest money for at least 5 years or more and high returns.
SBI Small Cap Fund Reg (G)
A small-cap category equity mutual fund, run and managed by SBI Mutual Fund House. The fund has 96.65% investment in Indian stocks of which, 9.07% is in mid-cap stocks, 73.96% in small-cap stocks.
The fund size of the scheme is around Rs 9,091 crores and it charges a total expense ratio of around 1.93%. Fund also charges a kind of exit load equal to 1.0% of sell value if the fund is sold before 365 days.
The prime objective of the fund is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme.
This fund predominantly invests in a well-diversified basket of equity stocks of small-cap companies. Investors looking to invest money for at least 5 years or more and higher returns must consider investing in this fund.
Kotak Small-Cap Fund (G)
A small-cap category equity mutual fund, run and managed by Kotak Mahindra Mutual Fund House. The fund has 93.32% investment in Indian stocks, out of which 1.76% is in large-cap stocks, 12.95% is in mid-cap stocks, 67.73% in small-cap stocks.
The fund size of the scheme is around Rs 4,765 crores and it charges a total expense ratio of around 1.98%. Fund also charges a kind of exit load equal to 1.0% of sell value if the fund is sold before 365 days.
The objective of the fund is to generate capital appreciation from a diversified portfolio of equity and equity-related securities by investing predominantly in small-cap companies.
Investors looking to invest money for at least 5 years or more and higher returns must consider investing in this fund. At the same time, they should also be prepared for the possibility of higher losses in their investments.
HDFC Small Cap Fund (G)
A small-cap category equity mutual fund, run and managed by HDFC Mutual Fund House. The fund has 95.22% investment in Indian stocks, out of which 2.01% is in large-cap stocks, 5.34% is in mid-cap stocks, 81.52% in small-cap stocks.
The fund size of the scheme is around Rs 12,460 crores and it charges a total expense ratio of around 1.83%. Fund also charges a kind of exit load equal to 1.0% of sell value if a fund is sold before 365 days.
The objective of the fund is to provide long-term capital appreciation /income by investing predominantly in Small-Cap companies. There is no assurance that the investment objective of the Scheme will be realized.
This fund is best recommended to investors looking to invest money for at least 5 years or more and high returns. At the same time, these investors should also be ready for the possibility of higher losses in their investments.
To get more details about the fund you can refer to the fund fact sheet. For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).