Small Cap Mutual Funds are equity schemes, which predominantly invest in small companies. Small cap funds have done very well and have given a bumper return of around 63.17% in three years.
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Small Cap Mutual Funds are equity schemes, which predominantly invest in small companies. Small cap funds have done very well and have given a bumper return of around 63.17% in three years. As per the guidelines of the Securities and Exchange Board of India (SEBI), a small cap fund must have at least 65 per cent presence of small cap companies in its portfolio. Small cap companies are those which are more than 250 in terms of total market capitalisation. AMFI or SEBI updates the list of market cap.
In terms of risk-return, small cap funds carry the highest investment risk. There is a lot of volatility in small cap shares. When the market environment is good, they give excellent returns. But when the situation is not good, then a big decline is also seen in them. So, when you invest in small cap funds, you should be prepared to deal with short term headwinds and not panic.
Let us tell you about five such equity schemes, which have given bumper returns to the customers.
Quant Small Cap Fund
This small cap fund has given returns of up to 222.83 per cent.
Nippon India Small Cap Fund
Investors have got the highest return of 152.09 per cent in this fund.
Canara Robeco Small Cap Fund
On investing money in this scheme, customers have got a maximum return of up to 125.25 percent.
Tata Small Cap Fund
This small cap fund has given maximum returns of 116.69% to the investors.
HSBC Small Cap Fund
On investing in this small cap fund, people have achieved a maximum return of 126.35 per cent.
Keep in mind that most mutual fund schemes are open ended. Investment can be withdrawn at any time from open ended mutual fund schemes. Withdrawals can be made in parts instead of the entire investment. On this, according to your scheme, you just have to pay the exit load, which is generally very less.