- Date : 05/05/2020
- Read: 9 mins
We have identified funds based on their performance over the last five years.
As per the new SEBI guidelines, small-cap mutual fund schemes are those in which one has to invest at least 80% of their corpus in small companies. Small companies, in this context, are those that have ranked below 250 on the stock exchange in terms of market capitalisation.
This section of the market is considered to be highly volatile, and therefore investing in small-cap mutual funds carries substantial risk. At the same time, these have the potential of generating high returns over long terms since these funds aim to identify small companies with high growth potential.
Therefore, you should consider investing in small-cap mutual funds only if you can stand the volatility and have an investment horizon of at least 7 to 10 years. Only a small fraction of your investment portfolio should be invested in such instruments.
While the small-cap returns took a hit over the last year, many experts think that this is the best time to invest in strongly managed small-cap funds as the market may rebound soon. Here are five small-cap funds you could consider, based on the 5-year returns generated by them.
Related: How to choose an equity mutual fund
1. SBI Small Cap Fund – Direct-Growth
| Launch Date | 2nd January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 52.9 |
| Plan Type | Direct |
| Rating by Value Research | 5 star |
| AUM (Fund Size) | INR 792 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 1000 |
| Peformance w.r.t its benchmark | Has consistently outperformed its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 1.47& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
2. Reliance Small Cap Fund – Direct-Growth
| Launch Date | 1st January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 41.6 |
| Plan Type | Direct |
| Rating by Value Research | 4 star |
| AUM (Fund Size) | INR 6696 Cr |
| Minimum SIP | INR 100 |
| Minimum SWP | INR 100 |
| Peformance w.r.t its benchmark | Has consistently outperformed its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 1.47& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
Related: How interest rates impact mutual funds
3. HDFC Small Cap Fund – Direct-Growth
| Launch Date | 1st January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 44.4 |
| Plan Type | Direct |
| Rating by Value Research | 5 star |
| AUM (Fund Size) | INR 4143 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 500 |
| Peformance w.r.t its benchmark | Has consistently outperformed its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 0.54& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
4. L&T Emerging Businesses Fund – Direct-Growth
| Launch Date | 12th May 2014 |
|---|---|
| NAV (4th Oct 2018) | INR 24.9 |
| Plan Type | Direct |
| Rating by Value Research | 5 star |
| AUM (Fund Size) | INR 4934 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 500 |
| Peformance w.r.t its benchmark | Has not performed better than its benchmark NIFTY Small-Cap 100 TRI in last one year |
| Age of the fund | 4 years old |
| Expense Ratio | 1.57& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
5. Aditya Birla Sun Life Small Cap Fund – Direct-Growth
| Launch Date | 1st January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 35.9 |
| Plan Type | Direct |
| Rating by Value Research | 3 star |
| AUM (Fund Size) | INR 2182 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 100 |
| Peformance w.r.t its benchmark | Has not performed better than its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 1.22& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
You could look at the small-cap mutual funds listed above as:
- A way to diversify your investments.
- A way to generate high growth over the long term.
- A way to take advantage of the agility of small companies even during choppy markets.
Have a look at the different types of mutual funds and how to start investing in them, which will explain the various nuances of a mutual fund and facilitate your financial planning process.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
As per the new SEBI guidelines, small-cap mutual fund schemes are those in which one has to invest at least 80% of their corpus in small companies. Small companies, in this context, are those that have ranked below 250 on the stock exchange in terms of market capitalisation.
This section of the market is considered to be highly volatile, and therefore investing in small-cap mutual funds carries substantial risk. At the same time, these have the potential of generating high returns over long terms since these funds aim to identify small companies with high growth potential.
Therefore, you should consider investing in small-cap mutual funds only if you can stand the volatility and have an investment horizon of at least 7 to 10 years. Only a small fraction of your investment portfolio should be invested in such instruments.
While the small-cap returns took a hit over the last year, many experts think that this is the best time to invest in strongly managed small-cap funds as the market may rebound soon. Here are five small-cap funds you could consider, based on the 5-year returns generated by them.
Related: How to choose an equity mutual fund
1. SBI Small Cap Fund – Direct-Growth
| Launch Date | 2nd January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 52.9 |
| Plan Type | Direct |
| Rating by Value Research | 5 star |
| AUM (Fund Size) | INR 792 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 1000 |
| Peformance w.r.t its benchmark | Has consistently outperformed its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 1.47& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
2. Reliance Small Cap Fund – Direct-Growth
| Launch Date | 1st January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 41.6 |
| Plan Type | Direct |
| Rating by Value Research | 4 star |
| AUM (Fund Size) | INR 6696 Cr |
| Minimum SIP | INR 100 |
| Minimum SWP | INR 100 |
| Peformance w.r.t its benchmark | Has consistently outperformed its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 1.47& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
Related: How interest rates impact mutual funds
3. HDFC Small Cap Fund – Direct-Growth
| Launch Date | 1st January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 44.4 |
| Plan Type | Direct |
| Rating by Value Research | 5 star |
| AUM (Fund Size) | INR 4143 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 500 |
| Peformance w.r.t its benchmark | Has consistently outperformed its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 0.54& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
4. L&T Emerging Businesses Fund – Direct-Growth
| Launch Date | 12th May 2014 |
|---|---|
| NAV (4th Oct 2018) | INR 24.9 |
| Plan Type | Direct |
| Rating by Value Research | 5 star |
| AUM (Fund Size) | INR 4934 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 500 |
| Peformance w.r.t its benchmark | Has not performed better than its benchmark NIFTY Small-Cap 100 TRI in last one year |
| Age of the fund | 4 years old |
| Expense Ratio | 1.57& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
5. Aditya Birla Sun Life Small Cap Fund – Direct-Growth
| Launch Date | 1st January 2013 |
|---|---|
| NAV (4th Oct 2018) | INR 35.9 |
| Plan Type | Direct |
| Rating by Value Research | 3 star |
| AUM (Fund Size) | INR 2182 Cr |
| Minimum SIP | INR 500 |
| Minimum SWP | INR 100 |
| Peformance w.r.t its benchmark | Has not performed better than its benchmark NIFTY Small-Cap 100 TRI since its launch |
| Age of the fund | 5 years old |
| Expense Ratio | 1.22& |
| Exit Load | If redeemed between 0 Year to 1 Year; Exit Load is 1% |
| Type | Open-Ended |
You could look at the small-cap mutual funds listed above as:
- A way to diversify your investments.
- A way to generate high growth over the long term.
- A way to take advantage of the agility of small companies even during choppy markets.
Have a look at the different types of mutual funds and how to start investing in them, which will explain the various nuances of a mutual fund and facilitate your financial planning process.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
