The following are the schemes best suited for investment by the investors who want to undertake investment in the small cap schemes.
The small cap schemes historically have generated returns higher than the Large Cap and the Mid Cap schemes. However the small schemes are extremely volatile as compared Large Cap and Mid Cap schemes.
The best way to therefore create wealth is to systematically invest money each month to battle that volatility. Therefore SIP becomes a great alternative to invest in the small cap.
Small cap schemes are suitable for investor having a time horizon of preferably 5 years. It is important to note that greater returns should not be the only criteria of making investment decision, the underlying risk should also be taken into consideration. Thus investor’s ability to take risk should be in line with the riskiness of the small cap schemes.
The following are the schemes best suited for investment by the investors who want to undertake investment in the small cap schemes.
Top 5 Small Cap Mutual Funds for SIP In Focus, according to Subodh Panse, Founder/Director of Certitude Fin Tech Services Pvt Ltd. Subodh is a Certified Financial Planner and has completed CFA.
The below schemes are based on proprietary scheme selection model built by a Team.
1.Bank of India Small Cap Fund
Value of 10,000 invested monthly for 5 year was 13,91,468.00
Return of 35.34%
Assets Under Management(AUM) as on March 2024 – Rs 915.97 Crs
Expense Ratio – 2.23%
2. Edelweiss Small Cap Fund
Value of 10,000 invested monthly for 5 year was 13,35,685.04
Return was 33.55%
Assets Under Management(AUM) as on March 2024 – Rs 3076.44 Crs
Expense Ratio – 1.88 %
3. Canara Robeco Small Cap Fund
Value of 10,000 invested monthly for 5 year was 13,20,445.00
Return was 33.05%
Assets Under Management(AUM) as on March 2024 – 9298.36Crs
Expense Ratio – 1.73%
4. Tata Small Cap Fund
Value of 10,000 invested monthly for 5 year was 13,51,448.96
Return was 34.06%
Assets Under Management(AUM) as on March 2024 – Rs 6124.46 Crs
Expense Ratio – 1.74%
5. Nippon India Small Cap Fund
Value of 10,000 invested monthly for 5 year was 15,25,925.16
Return was 39.42%
Assets Under Management(AUM) as on March 2024 – Rs 45,193.98 Crs
Expense Ratio – 1.52%
The time period in which the above returns are calculated includes the post COVID-19 rally of the markets. Such magnitude of high returns may not continue in the future.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)