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Small Cap Mutual Funds – Basic

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best small cap mutual funds

Small Cap Mutual Funds – A Start 

Small cap mutual funds invest the maximum portion of their corpus into equity OR equity-related instruments of small cap companies. According to SEBI, small cap companies must invest at-least 80% of their total assets in the small cap companies. According to SEBI, small cap companies are those that are ranked 250th in terms of market capitalization. Talking in monetary terms, these companies are less than INR 500 crores.  

It is important to know that small cap mutual funds carry quite a high level of risk; even a minimal volatility in the market can make a huge impact on the share’s prices of small cap companies. Although, these stocks give a good way-out for better returns. Thus, small cap funds are recommended only if you have a high tolerance to gather & a long-term investment horizon.  

Factors to Consider Before Investing 

Here: 

  • The NAV of small cap mutual funds are quite sensitive; thus, the market conditions might not be too good, also, losses can occur. So, make sure to take care of risks & returns of small cap mutual funds.  
  • Make sure to go for a scheme with a low-expense ratio. 
  • Small cap funds are not for the risk-averse investor. 
  • For longer-term small cap funds are good to go. 

Top 5 Small Cap Mutual Funds according to Gulaq 

Here: 

  • Axis Small Cap FundIt is an equity mutual fund scheme that was launched by Axis mutual fund. Later on, it was introduced on 29th Nov 2013 to its investors. Currently, the fund is managed by Ashish Naik. Talking about AUM, it is of INR 2084 Cr, and, the latest NAV is of INR 37.20 (dated as of 18th Feb 2020). The fund growth is rated as high-risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.  
  • SBI Small Cap FundIt is an equity mutual fund that was launched by SBI mutual fund. Later on, it was introduced on 2nd Jan 2013 to its investors. Currently, the fund is managed by Rama Iyer Srinivasan. Talking about AUM, it is of INR 3493, and, the latest NAV is of INR 61.56 (dated as of 18th Feb 2020). The fund growth is rated as moderately high-risk. Also, the minimum SIP investment is INR 500 with an exit load of 1% only if redeemed within a year.  
  • Nippon India Small Cap FundIt is an equity mutual fund that was launched by Reliance mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Dhrumil Shah, and Samir Rachh. Talking about AUM, it is of INR 9064 Cr, and, the latest NAV is of INR 44.03 (dated as of 18th Feb 2020). The fund growth is rated as moderately high-risk. Also, the minimum SIP investment is INR 100. 
  • HDFC Small Cap FundIt is an equity mutual fund scheme that was launched by HDFC mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Chirag Setalvad. Talking about AUM, it is of INR 9872 Cr, and, the latest NAV is of INR 42.25 (dated as of 18th Feb 2020). The fund growth is rated as moderately high risk. Also, the minimum SIP investment is INR 500, and, lumpsum investment is INR 5000. Exit load of 1% only if redeemed within 1 year.  
  • Kotak Small Cap Fund: It is an equity mutual fund scheme that was launched by Kotak Mahindra mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Pankaj Tibrewal. Talking about AUM, it is of INR 1592 Cr, and, the latest NAV is of INR 86.45 (dated as of 18th Feb 2020). The fund growth is rated as moderately high risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.  

Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]  or Whatsapp +91-9818894632

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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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