The 5 best small cap mutual funds to invest for sip

the 5 best small cap mutual funds to invest for sip

Small-Cap Funds are that category of Mutual Funds which can generate high returns short period. However, to get high returns, you have to take more risks.

Therefore, Small Cap Mutual Funds are best for investors who are willing to take high risks for high returns.
Today we are going to tell you the best Small Cap Funds.

5 helpful things help before invest in ELLS fund

Small-cap funds invest in companies that are new to the market, due to which they have huge growth potential. This type of new business has more scope for growth as compared to large-cap and mid-cap companies.

But it may be that due to being a new business, their business could not run. These possibilities are what make small-cap funds risky.

In this article, I will tell you the 5 best small-cap mutual funds to invest which are considered for investment.

1. Axis Small Cap Fund

This small-cap fund is a great fund of Axis Mutual Fund House. This fund has consistently generated returns higher than its benchmark index fund over the last 8 years.

  • If we talk about the portfolio of Axis Small Cap Fund, then it currently has a total of 64 stocks. 37.66% of its portfolio is invested in the top 10 stocks.
  • When selecting any mutual fund, it is necessary to see its alpha ratio. This ratio tells us how much more or less return the mutual fund has given than its benchmark. The alpha ratio of this mutual fund is 11.24% which is very good.
  • There is always high volatility in any small-cap fund. But the beta of Axis Small Cap Fund is only 0.73% which shows that this fund is less volatile than the market.

Returns –

In this fund, you can start SIP from ₹ 500 and lump sum from ₹ 5,000.

Talking about the ranking of this Small Cap Mutual Fund, it has been rated 3 Star by CRISIL, 5 Star by Value Research, and 5 Star by Morning Star.

Therefore Axis Small Cap Fund can be the best Small Cap Mutual Fund for you.

Short description

 

Return from Launch of Fund——-27.17% (Direct Plan)

Benchmark Index ——- NIFTY Small Cap 100 TRI

AUM – Asset Under Management——- ₹8,179 Cr

Expense Ratio —- Direct Plan – 0.37% Regular Plan – 1.91%

Alpha Ratio —- 12.99% (Very Good)

Beta Ratio —- 0.73% (Less volatile)

2. SBI Small Cap Fund

This small-cap fund is a fund presented by SBI Mutual Fund House. This fund is a well-known fund in the small-cap category.

  • This fund has 51 stocks in its portfolio. 33.53% of its portfolio is invested in the top 10 stocks.
  • Both the Alpha Ratio and Beta Ratio of SBI Small Cap Fund are well above their ideal. You can start SIP in this fund from ₹ 500 and a lump sum from ₹ 5,000.
  • This Small-Cap Mutual Fund has been rated 4 Star by Value Research and 5 Star by Morning Star.

Short Description

 

Return from the launch of fund — 28.10% (Direct Plan)

Benchmark Index — S&P BSE Small-Cap TRI

AUM – Asset Under Management — ₹ 11,250 Cr (31 December 2022)

Expense Ratio  —- Direct Plan – 0.77% Regular Plan – 01.73%

Alpha Ratio—– 08.15% (Very Good)

Beta Ratio—- 0.78% (Less volatile)

Fund Manager—– Mr. R. Srinivasan – M.Com & MFM

3- Kotak Small Cap Fund

It is a small-cap fund from Kotak AMC which has performed well in this category.
Kotak Small Cap Fund currently has a total of 70 stocks. The top ten stocks make up 35.78% of this portfolio. The alpha ratio of this fund is 11.72% which is a good ratio. The same beta ratio is telling us that it is less volatile than the market.

Kotak Small Cap Fund has been rated 5 stars by CRISIL, 4 stars by Value Research, and 4 stars by Morning Star.

Short description

Return from Launch of Fund —- 22.81% (Direct Plan)
Benchmark Index —– NIFTY Small Cap 100 TRI
AUM – Asset Under Management —— ₹ 6,762 Cr (31 December 2022)
Expense Ratio —- Direct Plan – 0.48% Regular Plan – 01.94%
Alpha Ratio — 11.72% (Very Good)
Beta Ratio —- 0.90% (Less volatile)
Fund Manager —- Mr. Pankaj Tibrewal -B.Com (H) & MBA Finance

4. Nippon India Small Cap Fund

Earlier it used to be Reliance Small Cap Fund. But after Reliance sold it, now it has become Nippon Fund.

  • This Small Cap Fund has a total portfolio of 135 stocks, of which 24.27% are invested in the top ten stocks. This fund has also consistently outperformed its benchmark.
  • This small-cap mutual fund allows its investors to do SIP with just ₹ 100. Also, you can do a lump sum in it from ₹5,000.
  • Nippon India Small Cap Fund is rated 4 Star by CRISIL Rating Agency, 4 Star by Value Research, and 4 Star by Morning Star.

Short Description

 

Return from Launch of Fund——-27.54% (Direct Plan)

Benchmark Index —— NIFTY Small Cap 250 TRI

AUM –  ——— ₹ 18,832 Cr (31 December 2022)

Expense Ratio-—–Direct Plan – 1.03% Regular Plan – 01.98%

Alpha Ratio —- 07.56 % (Good)

Beta Ratio —- 0.92% (Less volatile)

Fund Manager —- Mr. Sameer Rach – B.Com (Hons)

5. BOI AXA Small Cap Fund

These Small Cap Mutual Funds are the offering of BOI AXA Mutual Fund House. This fund is compared to all other funds, which have been giving tremendous returns for some time now.

  • This Small Cap Fund has a total of 72 stocks in its portfolio, of which 26.23% are invested in the top ten stocks. The fund has outperformed its benchmark returns since its inception.
  • In this mutual fund, you can make SIP from just ₹1,000 and a lump sum of ₹5,000.
  • BOI AXA Small Cap Fund is rated 5 stars by Value Research and Morning Star.

Short Description

 

Return from Launch of Fund —– 43.20% (Direct Plan)

Benchmark Index —– NIFTY Small Cap 250 TRI

AUM —– ₹ 213 Cr (31 December 2022)

Expense Ratio —– Direct Plan – 1.21% Regular Plan – 02.76%

Alpha Ratio —–18.16% (Excellent)

Beta Ratio —- 0.76% (Less volatile)

Fund Manager——Mr. Akash Manghani – B.E

 

You can invest in any of the above-mentioned small-cap funds. At present, all these funds come under the category of Top Small-Cap Funds.

Here we have compiled the returns of all the mutual funds based on 7 to 8 years. Because if you are investing in small caps only for a long time then it is considered right.

There are high chances of losses in Small-Cap Funds. There are many things to keep in mind while selecting Mutual Funds. You can read this article”the 5 best small cap mutual funds to invest” of ours on how to choose mutual funds.

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