Greeting To Our Readers!
Small-Cap Equity Mutual Funds are one among the best wealth creation tools, for long-term financial goals, like retirement planning, child education, etc. These funds are featured to give better returns than large-cap equity mutual funds, however, they are a bit riskier also.
Small-cap funds invest in companies with small market-capitalization, defined as 251st company onwards in full market capitalization. Typically, these companies are either start-ups or young firms that retain the big potential to grow in the long run.
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.
Below, we are discussing some of the best Small-Cap Equity Mutual Funds where one can plan their investments, do have a look!
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%.
The fund's prime objective is to generate 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. At the same time, these investors should also be ready for the possibility of higher losses in their investments.
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%.
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. At the same time, they should also be prepared for the possibility of higher losses in their investments.
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%.
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 must know that there is no assurance that the investment objective of the Scheme will be achieved.
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%.
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).