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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 other members 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

  1. 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.
  2. Small-cap funds tend to perform better than large-cap funds but do remember they are more volatile than large-cap funds.
  3. Small-cap stocks are priced lower than mid-cap and large-cap stocks.
  4. 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!


Kotak Small-Cap Fund (G)

A small-cap category equity mutual fund, run and managed by Kotak Mahindra Mutual Fund House. The fund has 95.17% investment in Indian stocks of which 1.87% is in large-cap stocks, 11.45% is in mid-cap stocks, 70.97% in small-cap stocks.

The fund size of the scheme is around Rs 5,969 crores and it charges a total expense ratio of around 1.95%. 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.


Axis Small Cap Fund – Growth 

A small-cap category equity mutual fund, run and managed by Axis Mutual Fund House. The fund has 92.94% investment in Indian stocks of which 0.46% is in large-cap stocks, 6.65% is in mid-cap stocks, 71.16% in small-cap stocks.

The fund size of the scheme is around Rs 7,302 crores and it charges a total expense ratio of around 2.01%. 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 long-term capital appreciation from a diversified portfolio of predominantly equity & equity-related instruments 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.


Nippon India Small Cap Fund – Growth 

A small-cap category equity mutual fund, run and managed by Nippon India Mutual Fund House. The fund has 98.53% investment in Indian stocks of which 6.1% is in large-cap stocks, 6.3% is in mid-cap stocks, 75.8% in small-cap stocks.

The fund size of the scheme is around Rs 17,282 crores and it charges a total expense ratio of around 1.78%. Fund also charges a kind of exit load equal to 1.0% of sell value if a fund is sold before 30 days.

The objective of the fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of small-cap companies. While the secondary objective is to generate consistent returns by investing in debt and money market securities.

Investors looking to invest money for at least 5 years or more and higher returns must consider investing in this fund.


Union Small Cap Fund - Regular Plan-Growth 

A small-cap category equity mutual fund, run and managed by Union Mutual Fund House. The fund has 97.49% investment in Indian stocks of which, 9.65% is in mid-cap stocks, 54.66% in small-cap stocks.

Fund also has 0.07% investment in Debt of which 0.07% is in Government securities.

The fund size of the scheme is around Rs 563 crores and it charges a total expense ratio of around 2.56%. Fund also charges a kind of exit load equal to 1.0% of sell value if the fund is sold before 15 days.

The objective of the fund is to achieve long-term capital appreciation by investing substantially in a portfolio consisting of equity and equity-related securities.

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.


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).