Markets are trading near record highs and one has to be prudent now before investing. We are telling are readers to limit their exposure to equities as there has been a sharp upside in the markets. Here are 3 small cap equity mutual funds to consider for investment.
Axis Small Cap Fund
This fund has been well-rated by both CRISIL and Value Research Online. In fact, both have accorded the fund a 5-star rating. Axis Small Cap Fund has given a whopping return of 22 per cent in the last 1-year, while the 5-year returns has been nearly 14 per cent on an annualized basis every year.
An SIP of Rs 1 lakh would have grown to Rs 1.32 lakh in the last three years. The net asset value of the fund under the growth scheme is Rs 38.70. The fund has invested almost 93 per cent in equities, while the remaining is in debt instruments. The portfolio of the fund comprises names like Galaxy Surfacants, Brigade Enterprises, City Union Bank and MAS Financial Services.
SBI Small Cap Fund
This fund has a 5-star rating from Value Research. The net asset value of SBI Small Cap Fund is currently Rs 69.75 under the growth plan, while it is Rs 41.20 under the dividend plan.
A Rs 10,000 SIP in the last 3-years would have grown to Rs 4.86 lakhs in the last three years. Investors can look at the option of also investing Rs 5,000, with minimum SIP investment of Rs 500 each month.
The SBI Small Cap Fund is fully invested in debt and equity instruments, with equity investments comprising 97.4 per cent of the portfolio. The portfolio of the fund includes names like JK Cement, Elgi Equipments, City Union Bank, Blue Star and V-Guard Industries.
Nippon India Small Cap Fund
The Nippon India Small Cap Fund has given stupendous returns over a short tenure of year. In fact, the returns from the short term have been 28.70 per cent over the last 1 year. The fund has been rated as 4-star by Crisil.
The Nippon India Small Cap Fund has assets under management of Rs 10,398 crores, while the NAV under the growth plan is Rs 48.94. Investors can opt for SIP investment through the scheme as well.
We wish to emphasize the fact that small cap stocks are volatile and hence small cal equity mutual funds too can generate returns that are extremely volatile. Investors can look to invest in the fund only if they have an appetite for risk.
The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.
About the author:
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, commodities, mutual funds and tax planning.